Examlex
A bond that had a 20-year original maturity with 1 year left to maturity has more interest rate price risk than a 10-year original maturity bond with 1 year left to maturity.(Assume that the bonds have equal default risk and equal coupon rates, and they cannot be called.)
Weighted Average Cost of Capital (WACC)
An estimation of a company's capital cost where each type of capital is weighted according to its proportion.
Dividend Growth Rate
The annualized percentage rate of growth of a company's dividend payments to shareholders.
Market Risk Premium
The additional return an investor expects to receive from an equity investment over the risk-free rate, as compensation for taking on higher risk.
Risk-Free Rate
The Risk-Free Rate is the theoretical return on an investment with no risk of financial loss, typically associated with government bonds.
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