1) Koy Corporation's five-year bonds yield= 7.00%, and 5-year T-bonds yield= 5.15%. Real risk-free rate is r* = 3.0%, inflation premium for five-year bonds is IP = 1.75%, liquidity premium for Koy's bonds is LP = 0.75% versus zero for T-bonds, and maturity risk premium for all bonds is found with formula MRP = (t-1) × 0.1%, where t = number of years to maturity. Determine default risk premium (DRP) on Koy's bonds?
2) Write a 1-page report on existing national debt and fiscal deficit situation of our country. How we got here. How do the two parties think we can get out of it and what you think can be done to remedy the situation?
Min Pages: 1
You need to give adequate balance between telling facts, story, and your opinion. It requires being evident that you have done suitable amount of research. Forming an opinion based on our reading of 2 or 3 articles is not correct research. Grading of this project will be strict.