Multiple Choice
If the risk-free rate is 6.25%, the inflation premium is 2% and the liquidity premium is 0.5%, the long-term Treasury bond rate should be:
A) 6.75%
B) 7.75%
C) 8.25%
D) 8.75%
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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