Corporate Finance Assignment/ Professional Essay Writers
May 7th, 2020
You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.9%. Your 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 = 0.3%
• Maturity risk premium = 2.15%
• Default risk premium = 2.30%
On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. Get Finance Help Today