Question

The real risk-free interest rate in addition with an inflation premium is equal to

a.

required interest rate

b.

quoted risk-free interest rate

c.

liquidity risk-free interest rate

d.

premium risk-free interest rate

Answer: (b).quoted risk-free interest rate

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The real risk-free interest rate in addition with an inflation premium is equal to

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. An increase in interest rate leads to decline in value of

Q. The bonds issued by government and backed by U.S government are classified as

Q. The legal document in which the rights of issuing corporation and bondholders state is classified as

Q. The price of an outstanding bond decreases when the market rate is

Q. The rate of interest which is usually discussed by investors whenever the rate of return is discussed, is classified as

Q. The tax free bonds issue for the welfare by industrial agencies or pollution control agencies are classified as

Q. The value generally promises to pay at maturity date and a firm borrows is considered as bond's

Q. The maturity date decides at the time of issuance of bond and legally permissible is classified as

Q. The bonds with the deferred call have the protection which is classified as

Q. The bonds issued by local and state governments with default risk are

Q. The indexed bonds that are issued by linking payments to inflation are classified as

Q. The bonds having zero default risk are classified as

Q. The right held with the corporations to call the issued bonds for redemption is considered as

Q. The bond that has been issued in very recent timing is classified as

Q. The type of options that permit the bond holder to buy stocks at stated price are classified as

Q. When the price of bond is calculated below its par value, it is classified as

Q. The required rate of return in calculating bond's cash flow is also classified as

Q. An interest rate which is used in the calculation of cash flows of bonds is called

Q. According to top rating agencies S&P the triple-A and double-A rating bonds are classified as an

Q. The rate on debt that increases as soon as the market rises is classified as

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!