Question: 1. Problem 6.02 (Real Risk-Free Rate) eBook Problem Walk-Through You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.2%. Your brother-in-law,

1. Problem 6.02 (Real Risk-Free Rate) eBook Problem Walk-Through You read

1. Problem 6.02 (Real Risk-Free Rate) eBook Problem Walk-Through You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.2%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 2.75% Liquidity premium = 0.8% Maturity risk premium = 1.55% Default risk premium = 2.45% I On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. %

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