You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother-in-law, a

Question:

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother-in-law, a at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:
• Inflation premium = 3.25%
• Liquidity premium = 0.6%
• risk premium = 1.8%
• Default risk premium = 2.15%
On the basis of these data, what is the real risk-free rate of return?

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...