Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 5-year t-bonds yield 5.15%. the inflation premium

5-year T-bonds yield 5.15%. The inflation premium for 5-year bonds is IP = 1.75%, the...

60.1K

Verified Solution

Question

Finance

image
5-year T-bonds yield 5.15%. The inflation premium for 5-year bonds is IP = 1.75%, the liquidity premium for BBB rated bonds is LP = 0.75% versus zero for T- bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t - 1)x0.1%, where t = number of years to maturity. What is the real risk-free rate? Select one: a. 1.00% O b. 1.97% O c. 3.00% O d. 1.04% e.-1.15%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Imagine you are a conservation manager in New York City, trying to protect an endangered squirrel....

Mechanical Engineering
1.2K views

Case “EXCESS”      Stephanie Simon knew environmental manager Adam Baines would not be pleased with her report...

General Management
1.2K views

1.) Discuss how company’s use price to communicate perceived value and as consumers how we view...

Biology
1.2K views

08 Choose all that apply De 18 Organization for Matter and Energy Flow in Organisms...

Physics
1.2K views

Light of wavelength 500 nm travelling with a speed of 2 0 108 ms in...

Algebra
1.2K views

son lesson certify implifying Integer Exponer

Accounting
1.2K views

The accounting equation can be stated as: a Assets...

Accounting
1.2K views

Exercise 25-7 Your answer is partially correct. Try again. Nona Inc., which produces...

Accounting
1.2K views

A Statement of Cash Flows is: Select one: O a. only a requirement for companies...

Accounting
1.2K views

Ready Products Inc. operates two divisions, each with its own manufacturing facility. The accounting system...

Accounting
1.2K views

I need answer ASAP! An aging of a company's accounts receivable indicates the estimate...

Accounting
1.2K views

in comparison with a financial statement prepared in conformity with generally accepted accounting principles, a...