Question
30-day T-bills are currently yielding 3.1%. Inflation Premium = 2.5% Liquidity Premium = .8% Maturity risk premium = 1.8% Default risk premium = 2.15% Based
30-day T-bills are currently yielding 3.1%. Inflation Premium = 2.5% Liquidity Premium = .8% Maturity risk premium = 1.8% Default risk premium = 2.15% Based on the above information, what is the real risk-free rate of return? 1.7% 2.5% 1.1% 0.6%
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
