Treasury securities that have an interest rate of 85 will


Treasury securities that have an interest rate of 8.5% will mature in six years over the next six years the inflation rate is projected at 6% for each of the next three years and 5% each year there after using T as the number of years to maturity of the bond the maturity risk premium may be computed as follows 0.1%(t - 1). In other words the maturity risk premium of a one year bond is zero assuming the real risk free rate is constant overtime what is the real risk-free interest rate

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Business Economics: Treasury securities that have an interest rate of 85 will
Reference No:- TGS01358491

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