5-year Treasury bonds yield 5.8 %. The inflation premium (IP) is 1.9 %, and the maturity risk premium (MRP) on 5 - year bonds is 0.4 %. What is the real risk-free rate, r*? Select the correct answer. a. 3.82% b. 3.50% c. 4.14% d. 4.469 e. 4.78%
5-year Treasury bonds yield 5.8 %. The inflation premium (IP) is 1.9 %, and the maturity risk premium (MRP) on 5 - year bonds is 0.4 %. What is the real risk-free rate, r*? Select the correct answer. a. 3.82% b. 3.50% c. 4.14% d. 4.469 e. 4.78%
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 7PROB
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