Default risk premium 245 on the basis of these data what


You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.4%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 2.5% Liquidity premium = 0.9% Maturity risk premium = 1.7% Default risk premium = 2.45% On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Default risk premium 245 on the basis of these data what
Reference No:- TGS02296469

Expected delivery within 24 Hours