Question
The 30 day T-bill yield is currently 2.65%. You also know that the inflation premium is 0.44% for bonds with 5 years to maturity, and
The 30 day T-bill yield is currently 2.65%. You also know that the inflation premium is 0.44% for bonds with 5 years to maturity, and the default risk premium on corporate bonds is averaging about 3.20%. What is the real risk-free return?
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
