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#reading-6-time-value-of-money

Question

The return that borrowers pay comprises the nominal risk-free rate ( **[...]** ) and a **[...]**

Answer

real rate + an inflation premium

default risk premium.

default risk premium.

Tags

#reading-6-time-value-of-money

Question

The return that borrowers pay comprises the nominal risk-free rate ( **[...]** ) and a **[...]**

Answer

?

Tags

#reading-6-time-value-of-money

Question

The return that borrowers pay comprises the nominal risk-free rate ( **[...]** ) and a **[...]**

Answer

real rate + an inflation premium

default risk premium.

default risk premium.

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**Subject 1 Time Value of Money and Interest Rates**

a pure rate of interest) and an inflation premium. Risk: Companies exhibit varying degrees of uncertainty concerning their ability to repay lenders. Lenders therefore charge interest rates that incorporate default risk. <span>The return that borrowers pay thus comprises the nominal risk-free rate (real rate + an inflation premium) and a default risk premium. Compounding is the process of accumulating interest over a period of time. A compounding period is the number of times per year that interest is paid. Continuous compounding occur

a pure rate of interest) and an inflation premium. Risk: Companies exhibit varying degrees of uncertainty concerning their ability to repay lenders. Lenders therefore charge interest rates that incorporate default risk. <span>The return that borrowers pay thus comprises the nominal risk-free rate (real rate + an inflation premium) and a default risk premium. Compounding is the process of accumulating interest over a period of time. A compounding period is the number of times per year that interest is paid. Continuous compounding occur

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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