Question
If the 10-year treasury bond rate is 4.9%, the inflation premium is 2.1%, and the maturity-risk premium on a 10 year treasury bond is 0.3%,
If the 10-year treasury bond rate is 4.9%, the inflation premium is 2.1%, and the maturity-risk premium on a 10 year treasury bond is 0.3%, assuming that there is no liquidity-risk premium on these bonds, what is the real risk-free interest rate?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
