- Suppose The Real Risk Free Rate Is 3 50 The Average Future Inflation Rate Is 2 25 And A Maturity Premium Of 0 10 Pe 1 (42.88 KiB) Viewed 24 times
Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% pe
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% pe
Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10. What rate of return would you expect on a 1-year (short term) Treasury security? O 5.95% 5.85% 6.05% 5.75%