Treasury securities that have an interest rate of 85 will, Ask an Expert

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Treasury securities that have an interest rate of 8.5% will mature in six years over the next six years the inflation rate is projected at 6% for each of the next three years and 5% each year there after using T as the number of years to maturity of the bond the maturity risk premium may be computed as follows 0.1%(t - 1). In other words the maturity risk premium of a one year bond is zero assuming the real risk free rate is constant overtime what is the real risk-free interest rate

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91727185

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