If the 10-year Hong Kong government bond rate is 4.5 percent, the inflation premium is 2.3 percent,
Question:
If the 10-year Hong Kong government bond rate is 4.5 percent, the inflation premium is 2.3 percent, and the maturity-risk premium on the 10-year Hong Kong government bonds is 0.15 percent, assuming that there is no liquidity-risk premium on these bonds, what is the real risk-free interest rate?
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Step by Step Answer:
To calculate the real riskfree interest rate we need to subtract the inflation premium and the ma...View the full answer
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Related Book For 
Foundations Of Finance
ISBN: 9781292318738
10th Global Edition
Authors: Arthur Keown, John Martin, J. Petty
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