QUESTION 12 Kern Corporation's 5-year bonds yield 7.70% and 5 year T-bonds yield 4.50%. The...
80.2K
Verified Solution
Link Copied!
Question
Accounting
QUESTION 12 Kern Corporation's 5-year bonds yield 7.70% and 5 year T-bonds yield 4.50%. The real risk-free rate is r-2,5, the default risk premium for Kern's bonds is DRP 1.90% versus rere for T-bonds, the liquidity premium on Kern's bonds is LP-1-3, and the maturity riak premium for all bonde is found with the formula MRP (t-1)-0.1%, where t-number of years to maturity. What is the inflation premium (IP) on all 5 year bonds a. 1.36 D. 1.789 O 1.8296 1499 1.50
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.