The return that borrowers pay comprises the nominal risk-free rate ( [...] ) and a [...]
Answer
real rate + an inflation premium
default risk premium.
Tags
#reading-6-time-value-of-money
Question
The return that borrowers pay comprises the nominal risk-free rate ( [...] ) and a [...]
Answer
?
Tags
#reading-6-time-value-of-money
Question
The return that borrowers pay comprises the nominal risk-free rate ( [...] ) and a [...]
Answer
real rate + an inflation premium
default risk premium.
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Subject 1 Time Value of Money and Interest Rates a pure rate of interest) and an inflation premium.
Risk: Companies exhibit varying degrees of uncertainty concerning their ability to repay lenders. Lenders therefore charge interest rates that incorporate default risk. <span>The return that borrowers pay thus comprises the nominal risk-free rate (real rate + an inflation premium) and a default risk premium.
Compounding is the process of accumulating interest over a period of time. A compounding period is the number of times per year that interest is paid. Continuous compounding occur
Summary
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not learned
measured difficulty
37% [default]
last interval [days]
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