What is the risk-free rate on the treasury


At the present time, 10 year Treasury bonds are yielding 5.0%, where as investment grade corporate bonds (BBB rated-10 year) are paying 7%, please answer the following:

If the 10-year Treasury bond rate is 3.0%, the inflation premium is 1.0% and maturity risk premium on 10-year bond is .3%: What is the risk-free rate on the treasury bonds?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the risk-free rate on the treasury
Reference No:- TGS02322226

Expected delivery within 24 Hours