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You've read that lyr T-bonds are currently yielding 5.8%. Your broker has given you the following estimates of current interest rate premiums: Inflation premium: 3.25%
You've read that lyr T-bonds are currently yielding 5.8%. Your broker has given you the following estimates of current interest rate premiums: Inflation premium: 3.25% Liquidity premium: 0.6% Maturity risk premium: 1.85% Default risk premium: 2.15% On the basis of this data, what is the real risk-free rate of return? O 1.95% 3.35% 2.15% 2.55%
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