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You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.1%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:
Inflation premium = 2.5%
Liquidity premium = 0.8%
Maturity risk premium = 1.55%
Default risk premium = 2.75%
On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places.
EDIT: Nevermind, I figured it out. It's 1.6%
4.1% - 2.5% = 1.6%
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