Your brother in a bank told you that the real risk-free rate is 3.38%, Inflation is expected to be 2.29% this year and 5
Posted: Thu May 19, 2022 11:42 am
Your brother in a bank told you that the real risk-free rate is 3.38%, Inflation is expected to be 2.29% this year and 5.11% during the next two years. Assuming that maturity risk premium is 0.3% for all long-term securities. Default risk for corporate bonds is 4.85%. What is the yield on 3-year Treasury? (Note, if your answer is 12.34%, just entewyour answer as