nominal risk free rate + default risk premium + liquidity premium + maturity risk premium effective annual rate (EAR) the rate of interest that investors actually realize as a result of compounding is known as the ___ or effective annual yield (EAY). interest rate An ___ can be interpreted...
用Quizlet學習並牢記包含R1 - The largest component of returns for a 7 year zero coupon bond yielding 8% and held to maturity is: a. capital gains b. interest income c. reinvestment income、R2 - An investor buys a 10-year bond with 6.5% annual coupon and
credit risk rate pure rate of interest (2%-4%) - the amount a lender would charge if there were no possibilities of default and no expectation of inflation expected inflation rate of interest (0%-?) - lenders recognize that in an inflationary economy, they are being paid back with less...