Suppose the 15-year Treasury bond rate currently gives 4.8%. If the inflation premium is 1.1%,...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Suppose the 15-year Treasury bond rate currently gives 4.8%. If the inflation premium is 1.1%, and the maturity-risk premium on 15-year Treasury bonds is 0.3% 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)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
