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You are an analyst in the corporate finance department of publicly listed communications technology manufacturing company. Your company is exploring the markets appetite for another debt issue and you are asked to estimate what interest rate a 30-year bond would require you company’s triple A rating. You are also asked to break down the rate and generally provide your rationale for each component.

Please provide the breakdown of the different components for a 30-year old AAA rated corporate bond.

Nominal rate = r* + IP + DRP + LP + MRP.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92869261

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