What the real risk-free rate of return is, Accounting Basics

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What the real risk-free rate of return is

You read in the Wall Street Journal that 30-day US treasury bills are currently yielding 8%. Your brother in law, a broker, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums:

inflation premium= 5.0%
liquidity premium= 1.0%
maturity risk premium= 2.0%
default risk premium= 2.0%

Based on this data, what the real risk-free rate of return is: ?

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Accounting Basics: What the real risk-free rate of return is

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Accounting Basics: What the real risk-free rate of return is

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Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What the real risk-free rate of return is

Reference No:- TGS0101254

Recent Questions Asked Accounting Basics

Q : Prepare the journal entries for plano for the years

Q : However to avoid inverse on spurious noise

Q : The risk of developing chronic disease

Q : Define activity based costing

Q : What the real risk-free rate of return is

Q : List of the top 3 types insurances

Q : Percentage of completion revenue recognition method

Q : Definition of insurance deductible

Q : Attributes represent data about a movie copy at a video

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