Question
What is the risk premium on a U.S. Treasury bill if the risk-free rate is 2.0 percent. Assume that the market rate of return is
What is the risk premium on a U.S. Treasury bill if the risk-free rate is 2.0 percent.
Assume that the market rate of return is 7.0 percent and the yield to maturity on the 30 year Treasury bond is 5.75%.
| A. | 3.75% | |
| B. | 5.00% | |
| C. | 2.00% | |
| D. | 0.0% |
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Public Finance And Public Policy
Authors: Jonathan Gruber
2nd Edition
0716766310, 9780716766315
