Question
5-year Treasury bonds yield 5.0%. The inflation premium (IP) is 1.4%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no
5-year Treasury bonds yield 5.0%. The inflation premium (IP) is 1.4%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*?
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A Concise History Of International Finance From Babylon To Bernanke
Authors: Larry Neal
1st Edition
1107621216, 978-1107621213
