Question
Assume that the nominal 3-month U.S. Treasury bills is 3%, the inflation rate is 1%, the 30-year Treasury bonds is yielding 6%, and the return
Assume that the nominal 3-month U.S. Treasury bills is 3%, the inflation rate is 1%, the 30-year Treasury bonds is yielding 6%, and the return on 30-year Aaa-rated corporate bonds is 10%.
Based on the information given, what is the real risk-free 3-month US interest rate?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
