Question
in the current market, the expected loan rate for Sumsifer is composed of the following factors: inflation premium = 3.5%; default risk premium = 1%;
in the current market, the expected loan rate for Sumsifer is composed of the following factors: inflation premium = 3.5%; default risk premium = 1%; Real risk-free rate (r*) = 2.5%; liquidity premium = 1.5%; and maturity risk premium = 1.5%. What is the rate for US treasury bills?
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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
