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r = (
f * (nominal_int_rate * (1 - (1 - int_haircut) * u)) + (1 - f) *
(E + inflation_rate - E * ace_int_rate * ace)
)
It should be:
r = (
f * (nominal_int_rate * (1 - (1 - int_haircut) * u)) + (1 - f) *
(E + inflation_rate - ace_int_rate * ace)
)
The ace_int_rate is a parameter representing the rate at which the costs of equity can be deducted. It's something one might compare to E, but it is not a proportion of E.
The text was updated successfully, but these errors were encountered:
Currently,
calcfunctions.calc_r
has:It should be:
The
ace_int_rate
is a parameter representing the rate at which the costs of equity can be deducted. It's something one might compare toE
, but it is not a proportion ofE
.The text was updated successfully, but these errors were encountered: