Tweet
1. If govt 5 year rates are 3% and the firm has a credit spread of 5% on its straight bonds, what is the amount it must pay to issue these bonds?
2. If a company has to pay a 10% equity risk premium, how much will it need to pay when 10-year govt bond rates are 4%?
No additional info was given.
Hi. I'm new so forgive me if this the inappropriate place to ask. Anyways, just begun to learn about finance and I hope to contribute to this community in some way
2. If a company has to pay a 10% equity risk premium, how much will it need to pay when 10-year govt bond rates are 4%?
No additional info was given.
Hi. I'm new so forgive me if this the inappropriate place to ask. Anyways, just begun to learn about finance and I hope to contribute to this community in some way
Comment