Question
The real risk free rate is 2%. The inflation premium for the next three years is 4.6%. The maturity risk premium for three year bonds
The real risk free rate is 2%. The inflation premium for the next three years is 4.6%. The maturity risk premium for three year bonds is 4.0%. Liquidity premium is 3% and default risk premium is 3.0%. What is the nominal rate on a three year Treasury Bond?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
