Question
( Calculating the maturity-risk premium ) At present, the real risk-free rate of interest is 1.5%, while inflation is expected to be 1.6% for the
(Calculating
the maturity-risk
premium)
At present, the real risk-free rate of interest is
1.5%,
while inflation is expected to be
1.6%
for the next two years. If a 2-year Treasury note yields
5.7%,
what is the maturity-risk premium for this 2-year Treasury note?
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Handbook On Second Lien Loans & Intercreditor Agreements
Authors: Mark N. Berman, Jo Ann J. Brighton
1st Edition
0981865593, 978-0981865591
