Easysemester.com

Assume that the real risk-free rate of interest is 1.0%; inflation is expected to be 1.5%; the maturity risk premium is 2.5%; and, the default risk premium for AAA-rated corporate bonds is 3.5%. What rate of interest should the U.S. Treasury bond pay? ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download