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You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 3.00% Liquidity premium = 0.4% " Maturity risk premium 1.70% . Default risk premium = 2.90% 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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