Use the following information to calculate the interest rate on a 10-year Treasury Note. Inflation: next three years = 5
Posted: Sun Jun 05, 2022 10:10 am
Use the following information to calculate the interest rate on
a 10-year Treasury Note. Inflation: next three years = 5.5% year 4
and beyond = 4.5% Real Risk-Free Rate (r*) = 2% The maturity risk
premium is calculated using the formula, MRP = 0.1%* (t – 1), where
t = number of years to maturity.
a 10-year Treasury Note. Inflation: next three years = 5.5% year 4
and beyond = 4.5% Real Risk-Free Rate (r*) = 2% The maturity risk
premium is calculated using the formula, MRP = 0.1%* (t – 1), where
t = number of years to maturity.