Business, 23.03.2020 16:53 perezrhonda30

5-year Treasury bonds yield 4.4%. 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. 2.10%
B. 2.39%
C. 2.21%
D. 2.58%
E. 1.91%

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5-year Treasury bonds yield 4.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium...