Question
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what
If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace on short term treasury securities?
| a. 8% | ||
| b. 7% | ||
| c. 6% | ||
| d. 5% |
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Interest Rate Swaps And Their Derivatives A Practitioners Guide
Authors: Amir Sadr
1st Edition
0470443944, 978-0470443941
