Question
You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.4%. Your brother-in-law, a broker at Safe and Sound Securities, has given
| You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.4%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 2.75% Liquidity premium = 1.0% Maturity risk premium = 1.85% Default risk premium = 2.75% On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. % |
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The Palgrave International Handbook Of Basic Income
Authors: Malcolm Torry
1st Edition
3030236137, 978-3030236137
