| Question | Are some less sensitive to market/systematic factors (recession, depression, war, etc.) than others? Provide some examples. Is there a measure that may allow us to evaluate this? How would we use it? The factors that are used to determine the market interest rate on the bond are: 1. The Risk Free Rate 2. The Default-risk Premium 3. The liquidity Premium 4. The market Risk premium What are these items, and how do they interact to arrive at the quoted interest rate. |
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| Subject | business-economics |
