What would be the interest rate on a 10-year Treasury note, given the following information? kpr =
Fantastic news! We've Found the answer you've been seeking!
Question:
What would be the interest rate on a 10-year Treasury note, given the following information? kpr = 1% MR = 0.1% for a 1-year loan, increasing by 0.1% each additional year. LR = 0.5% for a security with low liquidity and 1.0% for one with very low liquidity. DR= 0 for a 1-year loan, 0.1% for a 2-year loan, increasing by 0.15 % for each additional year. Expected inflation rates: Year 1 = 2.80% Year 2 = 4.2% Year 3 and thereafter: 5.0%
Related Book For
Fundamentals of Financial Management
ISBN: 978-1285867977
14th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: