Table of Interest - Finance

SoccerBoss
Category:
Business & Finance
Price: $5 USD

Question description

Calculate a table of interest rates based on the following information:

  • The pure interest rate is 1.6%
  • Inflation expectations for year 1 = 3%, year 2 =3.5%, years 3-5 =5%
  • The default risk is .1% for year one and increases by .2% over each year
  • Liquidity premium is 0 for year 1 and increases by .2% each year
  • Maturity risk premium is 0 for years 1 and 2 and .2% for years 3-5

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