What is the risk-free rate that you should use


Problem

You want to invest in India. You checked the Indian government rupee bond rate is 8.6%. the local currency rating from Moody's was Baa3 and the default spread for a Baa3 rated country bond is 2.5%. And US government bond rate is 4.5%. What is the risk-free rate that you should use?

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Financial Management: What is the risk-free rate that you should use
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