5-year Treasury bonds yield 6.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*?
a. |
3.80% |
|
b. |
3.42% |
|
c. |
3.69% |
|
d. |
4.45% |
|
e. |
4.03% |
a. 3.80%
Real risk-free rate, r* = 5-year Treasury bonds yield - Inflation premium - Maturity risk premium
Real risk-free rate, r* = 6.1% - 1.9% - 0.4%
Real risk-free rate, r* = 3.80%
5-year Treasury bonds yield 6.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium...
5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*? a. 3.52% b. 2.59% c. 2.88% d. 3.20% e. 3.87%
5 year treasury bonds yield 6.4%. The inflation premium (IP) is 1.9%, and the maturity risk (MRP) on 5 year bonds is 0.4%. What is the real risk free rate, r*?
5-year Treasury bonds yield 5.3%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? (Provide your answer as a percentage)
5-year Treasury bonds yield 4.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? Select the correct answer. a. 1.32% b. 1.64% c. 1.48% d. 1.80% e. 1.96%
5-year Treasury bonds yield 5.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? Select the correct answer. a. 2.65% b. 2.80% c. 2.50% d. 2.35% e. 2.20%
5-year Treasury bonds yield 3.8%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*? Select the correct answer. a. 1.62% b. 1.50% c. 1.98% d. 1.74% e. 1.86%
16. 5-year Treasury bonds yield 5.0 % . The inflation premium (IP) is 1.9% , and the maturity risk premium (MRP) on 5-year bonds is 0.3%. What is the real risk-free rate, r ? a. 2.59% b. 2.70% c. 3.20% d. 3.52% e. 2.80%
Suppose the real risk free rate : 4.205. Expected inflation - 1.10 Maturity riak premium, P = 0.10(E) where to the years to maturity. Calculate for the return of year Treasury security? a. 7.50 b. 7.80 c. 7.701 13. Pirms five year bonds. yield -6.201; Five year Treasury bonds yield - 4.401. Real risk-free rate, r. - 2.51. Expected inflation for five yar bonds, IP - 1.501. Liquidity premium for AA bond, LP - 0.51 and zero for Treasury bonds....
Higgins’ 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-free rate is r* = 2.5%, the inflation premium for 5-year bonds is IP = 1.50%, the liquidity premium for Higgins' bonds is LP = 0.5% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1) 0.1%, where t = number of years to maturity. What is the default risk premium (DRP) on Higgins' bonds?
Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.45%. The real risk-free rate is r* = 2.80%, the default risk premium for Crockett's bonds is DRP = 1.00% versus zero for T-bonds, the liquidity premium on Crockett's bonds is LP = 0.90% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t – 1) × 0.1%, where t = number of years to maturity. What inflation premium (IP)...