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The 30-day T-bill yield is currently 2.10%. You also know that the inflation premium today is 1.59%, the liquidity premium is 0.73%, the maturity risk
The 30-day T-bill yield is currently 2.10%. You also know that the inflation premium today is 1.59%, the liquidity premium is 0.73%, the maturity risk premium is 0.65% for bonds with 5 years to maturity, and the default risk premium on corporate bonds is averaging about 2.03%. What is the real risk-free rate of return? 0.51% 1.05% 1.15% 1.30% 2.25%
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