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a. Calculate the real risk free interest rate 3 mth U.S. Treasury Bill rate % (risk free) 30yr U.S.Treasury int. rate % 30 yr corp
| a. Calculate the real risk free interest rate | |||||||||||
| 3 mth U.S. Treasury Bill rate % (risk free) | 30yr U.S.Treasury int. rate % | 30 yr corp AAA bonds int. rate | Inflation premium | Liquidity risk premium | Nominal int. rate = | real | risk-free | int. | |||
| 20th March 2022 | 0.53% | 2.51% | 3.01% | 4.50% | 0.01% | + | inflation | premium | |||
| 14th April 2022 | 0.74% | 2.92% | 3.77% | 4.50% | 0.01% | + | Default-risk | premium | |||
| + | Maturity-risk | premium | |||||||||
| b. What can you conclude regarding the yield curve direction ? | + | Liquidity-risk | premium |
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The Investment Code Ancient Jewish Wisdom For The Wise Investor
Authors: H. W. Charles
1st Edition
1533423466, 978-1533423467
