Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

Dean.Shyy Group Title

With U.S. securities being default risk free, what would happen if the economic state of the general nation collapses? Would there still be the default risk free component involved?

  • one year ago
  • one year ago

  • This Question is Closed
  1. keenlearner Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    practically risk free rate does not mean that there is no risk . risk free rate is the minimum rate that people of the country should get on their investments in addition to risk premium (depending upon the type of security they r investing in) . WE have an example of Greece where entire economy collapsed ...practically it definitey carries a default risk but its rarest hence regarded as risk free

    • one year ago
  2. FranckV Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Some people would argue that the central bank (Fed or ECB) deposit rate is the new "risk free rate"

    • one year ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...


  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.