You are attempting to do a valuation of a Chilean company in real terms. While you have been unable to get a real riskless rate in Latin America, you know that inflation-indexed Treasury bonds in the United States are yielding 3%. Could you use this as a real riskless rate? Why or why not? What are the alternatives?

Answer rating: 100% (QA)

No using the real riskless rate of the United States for a Chilean company would not be appropriate ... View the full answer