What is the real risk-free rate


5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on five-year bonds is 0.4%. What is the real risk-free rate, r*?

  • 2.59%
  • 2.88%
  • 3.20%
  • 3.52%
  • 3.87%

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Finance Basics: What is the real risk-free rate
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