Explain the difference between the risk-free interest rate


1. What lessons should be learned from the Mexican Pesos crsis of 1994 that may be useful for other developing countries ?

2. Explain the difference between the risk-free interest rate and the nominal interest rate. Further explain the various impacts on business productivity should any of these rates change.

3. If a firm has a lot of debt, under what conditions is it advantageous and under what circumstances is it disadvantageous?

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Financial Management: Explain the difference between the risk-free interest rate
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