Estimate the interest rate on bonds


Question:

Assuming a real risk-free rate of 2% and a MRP +0.1x(t)%, t is the # of years to maturity, estimate the interest rate in Jan 1981 on bonds that mature in 1,2,5 and 20 years, and use Excel to draw a yield curve based on this information.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Estimate the interest rate on bonds
Reference No:- TGS02082720

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)