Suppose that the current 3-month Treasury bill rate is 3% and the inflation rate is 2%. The
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Suppose that the current 3-month Treasury bill rate is 3% and the inflation rate is 2%. The 30-year Treasury bond rate is 5% and the 30-year corporate bond rate is 8%. Assuming that the liquidity-risk premium is estimated at 3 basis points. What is the nominal interest rate?
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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