Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Marigold Corp. wants to borrow money from Howard Bank for a period of five years. The firm's credit standing calls for a premium of 1.5 percent over the prime rate. The current prime rate is 6.5 percent, the 30-year Treasury bond yield is 5.375 percent, the three-month Treasury bill yield is 3.525 percent, and the 5-year Treasury note yield is 4.25 percent. What is the appropriate loan rate for this customer?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944123

Have any Question? 


Related Questions in Basic Finance

Assume the followingerm 7rf 2expected risk premium on

Assume the following: E(rM) = 7% rF = 2% Expected risk premium on Boeing stock = 7% a. What is the expected return on Boeing stock? Show your work. b. What is the value of β for Boeing stock? Show your work.

1 why should researchers never use the one-group

1. Why should researchers never use the one-group pretest-posttest design? 2. What threats to internal validity are present when the nonequivalent control group posttest-only design is used? Which of these threats are el ...

Interpret the following statements about value at risk so

Interpret the following statements about Value at Risk so that they would be easily understood by a nontechnical corporate executive: a. VAR of $1.5 million, one week, probability = 0.01. b. VAR of $3.75 million, one yea ...

For each of the following situations determine whether a

For each of the following situations, determine whether a long or short hedge is appropriate. Justify your answers. a. A firm anticipates issuing stock in three months. b. An investor plans to buy a bond in 30 days. c. A ...

1 what kinds of things do volunteer organizations provide

1. What kinds of things do volunteer organizations provide for victims in the aftermath of a disaster? 2. What is the Incident Command System, and why was it originally developed? 3. What are the five major management sy ...

Question 1 - suppose that the capital asset pricing model

Question 1 - Suppose that the Capital Asset Pricing Model (CAPM) holds. The market portfolio has an expected return of 10% and standard deviation 15%. The risk-free rate is 4%. Stock A has a beta of 1.4 and standard devi ...

Question 1 the most important feature of municipal bonds is

Question 1. The most important feature of municipal bonds is _____. the wide range of denominations and maturities that the interest is not taxable by the federal government the risk-free nature of this investment its ap ...

1 what are derivatives2 what is the difference between

1. What are derivatives? 2. What is the difference between hedging and speculating? 3. Why might a corn farmer want to hedge against volatile corn prices? 4. Would derivatives markets be better off if the only people buy ...

1 why does the inverse relationship between the inflation

1. Why does the inverse relationship between the inflation rate and the unemployment rate on the Phillips curve hold only in the short run? In the long run, what happens when the actual inflation rate differs from the ex ...

Why would an mnc consider examining only its lsquonet cash

Why would an MNC consider examining only its ‘net' cash flows in each currency when assessing its transaction exposure? Are currency correlations perfectly stable over time? What does your answer imply about using past d ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen