You are given the following data: r* = real risk-free rate 4% Constant inflation premium (IP) 7% Maturity risk premium (MRP) 1% Default risk premium for AAA bonds (DRP) 3% Liquidity premium for long-term Treasury bonds (T-bonds) (LP) 2% ? Assume that a highly liquid market does not exist for long-term T-bonds, and the expected rate of inflation is a constant. Given these conditions, the rate on long-term Treasury bonds is _____.
A. 23 percent
B. 11 percent
C. 14 percent
D. 19 percent
E. 27 percent
Answer: C
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Which of the following statements is true?
A. Both realized and implicit capital gains are taxed. B. Realized capital gains are taxed, while implicit capital gains are not taxed. C. Implicit capital gains are taxed, while realized capital gains are not taxed. D. Neither realized capital gains, nor implicit capital gains are taxed.
The ___________ is the period when the general marketplace switches over to the new technology
a. chasm b. bowling alley c. tornado d. beachhead e. main street
Operational regulation of commercial airlines by the Federal Aviation Administration is an instance of general government regulation
Indicate whether the statement is true or false
Using the information below, compute cycle efficiency: Process time6.0hoursInspections time0.5hoursMove time0.6hoursWait time0.9hoursStorage time72.0hours
A. 75.0%. B. 100.0%. C. 93.8%. D. 88.8%. E. 81.3%.