Ask
your own question, for FREE!
Finance
OpenStudy (anonymous):
Hi, now that Treasury Bonds don't have an AAA rating anymore, what other financial instruments can I use as "risk free rate" to estimate the cost of equity in CAPM. thanks !!!
Still Need Help?
Join the QuestionCove community and study together with friends!
OpenStudy (anonymous):
By downgrading the bond from AAA to AA+, rating agency estimated that there is a default risk for US bonds (albeit small one). So to get from the bonds to risk free rate, you should subtract this small risk. The rate which is subtracted is called default spread and you can find it on prof. Damodaran's website
Can't find your answer?
Make a FREE account and ask your own questions, OR help others and earn volunteer hours!
Join our real-time social learning platform and learn together with your friends!
Join our real-time social learning platform and learn together with your friends!
Latest Questions
qweqeeqw:
Pyrex = 9 x10^-6 Aluminum= 25 x10^-6 An aluminum cap which serves as a cover to a glass pyrex jar is tightly attached to the glass; To open the jar, it was
qweqeeqw:
An aluminum cap which serves as a cover to a glass pyrex jar is tightly attached to the glass; To open the jar, it was exposed to a hot water bath and the t
Oliv:
A car picking up speed at a uniform rate from rest passes three VECO posts in succession.
Oliv:
A car picking up speed at a uniform rate from rest passes three VECO posts in succession.
Astro:
How to write an argumentative essay- A tutorial- Astro No comments please and tha
stromj3688:
A battery contains two metals that have different tendencies to attract electrons.
kittybasil:
QUERY: word problem? Not sure if this means the entire window or just the labeled
qweqeeqw:
Pyrex = 9 x10^-6 Aluminum= 25 x10^-6 An aluminum cap which serves as a cover to a glass pyrex jar is tightly attached to the glass; To open the jar, it was
2 minutes ago
4 Replies
1 Medal
qweqeeqw:
An aluminum cap which serves as a cover to a glass pyrex jar is tightly attached to the glass; To open the jar, it was exposed to a hot water bath and the t
31 minutes ago
0 Replies
0 Medals
Oliv:
A car picking up speed at a uniform rate from rest passes three VECO posts in succession.
1 minute ago
35 Replies
0 Medals
Oliv:
A car picking up speed at a uniform rate from rest passes three VECO posts in succession.
25 minutes ago
7 Replies
0 Medals
Astro:
How to write an argumentative essay- A tutorial- Astro No comments please and tha
4 hours ago
2 Replies
6 Medals
stromj3688:
A battery contains two metals that have different tendencies to attract electrons.
6 hours ago
0 Replies
0 Medals
kittybasil:
QUERY: word problem? Not sure if this means the entire window or just the labeled
5 hours ago
34 Replies
8 Medals