Multiple Choice
The nominal rate of interest is composed of
A) the real rate plus an inflationary expectation.
B) the real rate plus a risk premium.
C) the risk-free rate plus an inflationary expectation.
D) the risk-free rate plus a risk premium.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q32: The yield to maturity on a bond
Q67: The size of the loan and its
Q68: When the required return is constant and
Q69: The _ rate of interest creates equilibrium
Q70: Interest rate risk is the risk that
Q74: With subordinated debentures, payment of interest by
Q75: What is the current price of a
Q75: In the present value model, risk is
Q76: The size of the bond offering and
Q77: If a bond's required return always equals