Real risk-free rate you read in the wall street journal


Real Risk-Free Rate You read in The Wall Street Journal that 30-day T-bills are currently yielding 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 = 0.7% Maturity risk premium = 1.55% Default risk premium = 2.15% On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. %

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Financial Management: Real risk-free rate you read in the wall street journal
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