Generally, the Value to Use for the Risk-Free Interest Rate

question 41

Multiple Choice

Generally, the value to use for the risk-free interest rate is:

• A) Short-term Treasury bill rate
• B) Long-term Corporate bond rate
• C) Medium-term Corporate bond rate
• D) none of the above

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Definitions:

Pounds

A unit of weight in the imperial system equal to 16 ounces, or the currency of the United Kingdom.

C$1.00 Decreased

A specific case indicating a reduction in value by one Canadian dollar.

£ Per C$

The exchange rate that defines how much one British pound is worth in Canadian dollars.

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or technological obsolescence.