Real risk-free short-term interest rate


During the period 1984 to 2008, the average yield on 3-Month U.S. Treasury bills was 4.76%, the average inflation rate was 2.97%, the average yield on 30-year Treasury bonds was 6.89%, and the average return on 30-year Aaa-Rated Corporate Bonds was 7.73%. The real risk-free short-term interest rate is

A 1.79%.

B 2.13%.

C 2.97%.

D 4.76%

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Accounting Basics: Real risk-free short-term interest rate
Reference No:- TGS0511130

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