Interest rate determinationif the 10-year treasury bond, Ask an Expert

Finance

(interest rate determination)

If the 10-year Treasury bond rate is 5.6%, the inflation premium is 2.4%, and the maturity-risk premium on 10-year Treasury bonds is 0.7%, assuming that there is no liquidity-risk premium on these bonds, what is the real risk-free interest rate?

The real risk-free interest rate is.........(Round to one decimal place.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93048674

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