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1. Problem 6.02 (Real Risk-Free Rate) eBook Problem walk-Through You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.2%. Your brother-in-law,

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1. Problem 6.02 (Real Risk-Free Rate) eBook Problem walk-Through You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.2%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium - 3.00% Liquidity premium - 1.2% . Maturity risk premium = 1.40% Default risk premium - 2.30% 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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