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The current U.S one-year Treasury bill yield is 1.81% and the inflation rate is 1.70%. The 10-year treasury bon yield is 1.71%. Which of the
The current U.S one-year Treasury bill yield is 1.81% and the inflation rate is 1.70%. The 10-year treasury bon yield is 1.71%. Which of the following is correct?
a. The real short-term risk-free rate is 0.01%
b. the short-term risk-free rate is 1.71%
c. The maturity risk premium on the 10- year bond is 0.10%
d. the 10-year yield has inverted.
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