Question: Question 2 (1 point) 5 Year Treasury Notes are currently yielding 5.75%, and you have found the following interest premium that relate to this investment:
Question 2 (1 point) 5 Year Treasury Notes are currently yielding 5.75%, and you have found the following interest premium that relate to this investment: Inflation premium 2.25% Liquidity premium 0.00% Default risk premium 0.00% Maturity risk premium 2.00% Given the above information, what is the real risk-free rate of return? (Answer as a percent with 2 decimal places. For example, 10 percent should be entered as 10.00. Donot use the % sign.)
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