Question
the real risk- free rate is 3.05%, inflation is expected to be 2.85% this year, and the maturity risk premium for a treasury bond in
the real risk- free rate is 3.05%, inflation is expected to be 2.85% this year, and the maturity risk premium for a treasury bond in 0.3%. what is the interest rate on this bond?
A) 6.90
B) 6.20
C) 5.90
D) 3.05
E) 5.20
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Financial Management For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
