Why six month treasury bill rate is not riskless rate
Explain why a 6-month treasury bill rate is not an appropriate riskless rate in discounting a five-year cash flow?
Now Priced at $5 (50% Discount)
Recommended (95%)
Rated (4.7/5)
Assume that you are valuing an Indonesian firm in US dollars. What would you use as the riskless rate?
Set up an amortization schedule for a $5,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 15 percent.
Tracey is a sales representative for a national pharmaceutical company. She has a rather large sales territory, and she makes her rounds to her customers using a company-owned car over a 16- to 19-hour period of time.
Suppose that a company borrows $20,000 for 1 year at a stated rate of interest of 9 percent. What is the annual percentage rate (APR) if interest is paid to the lender (a) annually? (b) semiannually? (c) quarterly?
Rate of Growth. If a firm's earnings increase from $3.00 per share to $4.02 over a 6-year period, what is the rate of growth?
Add or drop with net present value analysis. Franklin county Hospital, a nonprofit hospital, bought and insatlled a new computer system last year for $65,000.
What amount should an investor be willing to pay for a $1,000, 5-year United States government bond which pays $50 interest semiannually and is sold to yield 8 percent?
S&P has a rating of BB on these bonds, and the typical spread for a BB rated country is 5% over a riskless rate. Estimate the rupiah riskless rate.
1960677
Questions Asked
3,689
Active Tutors
1420906
Questions Answered
Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!
Explain the risks of not reporting the results of your forensic assessment findings accurately. Provide specific examples.
Read "The Effect of Tart Cherry Juice Compared to a Sports Drink and Cycling Exercise Performance, Substrate Metabolism, and Recovery" from University Library
Identify and analyze one resource that provides information regarding services for dealing with and treating substance use and abuse in youth or adolescence.
Discuss how culture may influence one's perceptions. Provide an example of how culture may impact the interaction between a patient/client
Write an essay describing your achievement of a goal and your friends or family member's achievement of a goal using motivational theory
Pets can have a therapeutic effect on people; they seem to have the power to calm the anxious and cheer the depressed. Give three reasons
Review Chapter 12 and consider how your culture has impacted your worldview and personality. Pay particular attention to the section on characteristics of Cult