Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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39. A government treasury bond with 5-year tenor carries a 4.5% coupon. Normally, government treasury bonds carry a 1.5% maturity risk premium. Assuming an inflation premium of 0.65%, how much is the real risk-free rate?
Answer should be with 2 decimal points without the percentage sign (e.g., 3.00).
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