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1. Problem 6.02 Click here to read the eBook: The Determinants of Market Interest Rates REAL RISK-FREE RATE You read in The Wall Street Journal
1. Problem 6.02 Click here to read the eBook: The Determinants of Market Interest Rates REAL RISK-FREE RATE You read in The Wall Street Journal that 30-day T bills are currently yielding 4%, Your brother in aw, a broker at Safe and Sound Securities, has given you the following estimates c current interest rate premiums . Inflation premium-2.75% Liquidity premium-0.5% Maturity risk premium-2.15% 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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