eBook Problem Walk-Through You read in The Wall Street Journal that 30-day T-bills are currently...
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eBook Problem Walk-Through You read in The Wall Street Journal that 30-day T-bills are currently yielding 4,9%. 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 - 0.5% Maturity risk premium - 2.30% Default risk premium - 2.75% 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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