Zastosowanie instrumentu Credit Default Swap do szacowania stopy wolnej od ryzyka na potrzeby wyceny wartości przedsiębiorstwa
Spplication of Credit Default Swap in order to estimate risk free rate in the process of company’s valuation

Summary/Abstract: As a reason of crisis on sovereign debt market, estimating risk free rates has to be revisited. It is clear that not all long term government bonds can be used as risk free rates in the process of estimating the cost of equity and furthermore value of company. Default risk of many countries has risen since August 2011 in particular Italy’s, Greece’s, Portugal’s and others. To estimate default risk and then risk free rates for countries we can apply innovation on financial markets − credit default swap. This contract covers all losses if specific bond (connected with this CDS) defaults. CDS is a reliable source of information about market perception of default risk in every country.

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