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(Interest rate determination) If the 10-year Treasury bond rate is 5.2%, the inflation premium is 2.8%, and the maturity-risk premium on 10-year Treasury bonds is
(Interest rate determination) If the 10-year Treasury bond rate is 5.2%, the inflation premium is 2.8%, and the maturity-risk premium on 10-year Treasury bonds is 0.5%, assuming that there is no liquidity-risk premium on these bonds, what is the real risk-free interest rate? The real risk-free interest rate is 1%. (Round to one decimal place.)
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