What does statement imply about market price of risk

Reference no: EM131241015

‘‘The expected future value of an interest rate in a risk-neutral world is greater than it is in the real world.''

What does this statement imply about the market price of risk for (a) an interest rate and (b) a bond price.

Do you think the statement is likely to be true? Give reasons.

Reference no: EM131241015

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