Suppose the 20-year Treasury bond rate currently gives 4.3%. If the inflation premium is 1.5%, and...
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Suppose the 20-year Treasury bond rate currently gives 4.3%. If the inflation premium is 1.5%, and the maturity-risk premium on 20-year Treasury bonds is 0.6% then, assuming that there is no liquidity-risk premium on T-bonds, what is the real risk-free interest rate? (State your answer in one decimal point) Suppose the 20-year Treasury bond rate currently gives 4.3%. If the inflation premium is 1.5%, and the maturity-risk premium on 20-year Treasury bonds is 0.6% then, assuming that there is no liquidity-risk premium on T-bonds, what is the real risk-free interest rate? (State your answer in one decimal point)
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Answer rating: 100% (QA)
The real riskfree interest rate is the rate of return ... View the full answer
Related Book For
Introduction to Corporate Finance
ISBN: 978-0324657937
2nd edition
Authors: Scott B. Smart, William L Megginson
Posted Date:
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