Anyone can help please?? You read in the Wall Street Journal that 30-day T-bills

Question

Anyone can help please??

You read in the Wall Street Journal that 30-day T-bills are currently yielding 5.5%. You brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums.

Inflation Premium = 3.25%

Liquidity Premium = 0.6%

Maturity Risk Premium = 1.8%

Default Risk Premium = 2.15%

On the basis of these data, what is the real risk-free rate of return?

2.) The real risk-free rate is 3%. Inflation is expected to be 2% this year, 4% during the next two years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield on 3-year Treasury securities?

3.) Callaghan Motors

Explanation / Answer

answer is :

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.