Answer:
-1=5(-5)
-1=-25
nope
Step-by-step explanation:
Answer:
hey mate here is your answer
Answer:
real risk-free rate = 2.7 %
Step-by-step explanation:
Given data
Treasury bonds yield r = 5%
time = 5 year
(IP) = 1.9%
MRP = 0.4%
to find out
real risk-free rate r*
solution
we will find real risk-free rate r* by the given formula that is
Treasury bonds yield = real risk-free rate + IP + MRP + default risk premium + liquidity premium
so here default risk premium and liquidity premium both are zero
put all the other value we get real risk-free rate
real risk-free rate = 5% - 1.9 % - 0.4%
real risk-free rate = 2.7 %
