Does the book value of the debt coincide with market value
Does the book value of the debt all the time coincide with its market value?
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No. Some illustrations include: long-term debt along with a fixed interest rate which is higher or lower than the present market rate; debt to a company with certain serious financial troubles and debt along with government subsidies.
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
Explain the working of breakthrough in low-discrepancy sequences used for option valuation.
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Explain useful properties of low-discrepancy sequence theory or quasi random number theory.
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Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
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