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  2. Risk-free rate - Wikipedia

    en.wikipedia.org/wiki/Risk-free_rate

    The risk-free rate is also a required input in financial calculations, such as the Black–Scholes formula for pricing stock options and the Sharpe ratio. Note that some finance and economic theories assume that market participants can borrow at the risk-free rate; in practice, very few (if any) borrowers have access to finance at the risk free ...

  3. Risk-free bond - Wikipedia

    en.wikipedia.org/wiki/Risk-free_bond

    A risk-free bond is a theoretical bond that repays interest and principal with absolute certainty. The rate of return would be the risk-free interest rate. It is primary security, which pays off 1 unit no matter state of economy is realized at time +. So its payoff is the same regardless of what state occurs.

  4. Asset retirement obligation - Wikipedia

    en.wikipedia.org/wiki/Asset_retirement_obligation

    The tanks have an estimated life of 40 years (or, alternatively, the station site is leased for 40 years). The current cost to remove the tanks is $15,000. The company estimates future inflation for this type of work to be 2.5% per year. The company's credit-adjusted risk-free rate (cost of borrowing) is 9%.

  5. Are Risk-Free Assets Worth Investing in During Inflation? - AOL

    www.aol.com/finance/risk-free-assets-worth...

    These investments tend to have low rates of … Continue reading → The post Understanding Risk-Free Assets: Guide appeared first on SmartAsset Blog. ... 800-290-4726 more ways to reach us.

  6. TED spread - Wikipedia

    en.wikipedia.org/wiki/TED_spread

    The TED spread is an indicator of perceived credit risk in the general economy, [2] since T-bills are considered risk-free while LIBOR reflects the credit risk of lending to commercial banks. An increase in the TED spread is a sign that lenders believe the risk of default on interbank loans (also known as counterparty risk ) is increasing.

  7. 3 Reasons CDs Aren't as Risk-Free as You Think - AOL

    www.aol.com/3-reasons-cds-arent-risk-120025031.html

    For much of the year, CDs were paying 5% or even a bit more. And while CD rates are now down a bit following the Federal Reserve's mid-September rate cut, many CDs are still paying close to 5%.

  8. Risk-Free Rate: Definition and Usage - AOL

    www.aol.com/news/risk-free-rate-definition-usage...

    For premium support please call: 800-290-4726 more ways to reach us

  9. Risk–return spectrum - Wikipedia

    en.wikipedia.org/wiki/Risk–return_spectrum

    The lowest of all is the risk-free rate of return. The risk-free rate has zero risk (most modern major governments will inflate and monetise their debts rather than default upon them), but the return is positive because there is still both the time-preference and inflation premium components of minimum expected rates of return that must be met ...