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You Read in the Wall Street Journal That 30-Day T-Bills

Question 3

Multiple Choice

You read in The Wall Street Journal that 30-day T-bills currently are yielding 8 percent.Your brother-in-law,a broker at Kyoto Securities,has given you the following estimates of current interest rate premiums: You read in The Wall Street Journal that 30-day T-bills currently are yielding 8 percent.Your brother-in-law,a broker at Kyoto Securities,has given you the following estimates of current interest rate premiums: Based on these data,the real risk-free rate of return is A) 0% B) 1% C) 2% D) 3% E) 4% Based on these data,the real risk-free rate of return is


A) 0%
B) 1%
C) 2%
D) 3%
E) 4%

Correct Answer:

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