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  3. the pure rate of interest is 2.5 percent and the i

The pure rate of interest is 2.5 percent and the inflation premium is 5 percent....

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Accounting

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The pure rate of interest is 2.5 percent and the inflation premium is 5 percent. If you require a risk premtum of 3.5 percent, what is the risk-free rate? Use exact formulation. (Hint: Set risk premium equal to zerol) 7.50% 8.75\% 7.62% 6.00% 6.09%

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