Wall Street Journal Reports Rate 3 Year Treasury Securities 900 Percent 6 Year Treasury Ra Q17787514

The Wall Street Journal reports that the rate on 3-year Treasurysecurities is 9.00 percent, and the 6-year Treasury rate is 9.45percent. From discussions with your broker, you have determinedthat expected inflation premium is 3.85 percent next year, 3.20percent in Year 2, and 4.20 percent in Year 3 and beyond. Further,you expect that real interest rates will be 4.25 percent annuallyfor the foreseeable future. What is the maturity risk premium onthe 6-year Treasury security?




or .55

“We Offer Paper Writing Services on all Disciplines, Make an Order Now and we will be Glad to Help”

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.