Question: OOOO 3 10 eBook Problem Walk-Through You read in The Wall Street Journal that 30-day t-bills are currently yielding 6.0%. Your brother-in-law, a broker at

 OOOO 3 10 eBook Problem Walk-Through You read in The Wall

OOOO 3 10 eBook Problem Walk-Through You read in The Wall Street Journal that 30-day t-bills are currently yielding 6.0%. Your brother-in-law, a broker at Safe and Sound Securities has given you the following estimates of current interest rate premiums: Inflation premium - 3.50% Uquidity premium 0.7% Maturity risk premium - 1.85% Default risk premium = 2.00% On the basis of these data, what is the real risk-free rate of retum? Round your answer to two decimal places. 11

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