They will both next happen in 2040
To solve this problem and calculate the security's equilibrium rate of return, you should sum<span> the security's default risk premium (2.00%),</span> the inflation risk premium (1.75%), the real risk-free rate (3.50%), the security's liquidity risk<span> premium (0.25%) </span><span>and the maturity risk premium (0.85%). So, you have:
ij*=2.00%+1.75%+3.50%+0.25%+0.85%
</span> ij*=8.35%<span>
</span>
Cross multiply
19(x) = 30(9.5)
Simplify
19x = 285
Divide 19 from both sides
19x/19 = 285/19
x = 285/19
x = 15
B. 15 is your answer
hope this helps
Answer:
25% off - savings of $11.25
Step-by-step explanation:
To find discount percentage = ((List price - sale price) / List price) * 100
