What is the maturity risk premium

Assignment Help Financial Management

Reference no: EM132028483

A three-year treasury security currently earns 2.11 percent.

Over the next three years, the real risk-free rate is expected to be 1.2 percent, and the inflation premium is expected to be 0.60 percent per year.

What's the maturity risk premium, on the three-year treasury security?

Reference no: EM132028483

Questions Cloud

What will be your ipo price per share : Your investment banker advises you that the prices of other recent IPOs have been set such that the P/E ratios based on 2011 .

Find the weights for minimum variance portfolio : The probability distributions of the risky funds are: Find the weights (W and W) for minimum variance portfolio?

Can you determine why the logic in the problem is faulty : Perform a money balance, showing the net results among the five individuals (three students, clerk, and bellhop);

What is the effective yearly interest rate that you will be : What is the effective yearly interest rate that you will be paying to Thumbscrews if you accept this loan?

What is the maturity risk premium : Over the next three years, the real risk-free rate is expected to be 1.2 percent, and the inflation premium is expected to be 0.60 percent per year.

What would be the index value : Three stocks have share prices of $12. $75. and $30 with total market values of $400 million. $350 million, and $150 million, respectively.

What are three of the practical limitations concerning : What are three of the practical limitations concerning the writing evidencing a negotiable instrument and the substance on which it is placed?

Draw cash flow diagram for each machine : Three machines are considered for a manufacturing operation. The cash flows shown black ( all in thousands )

Determine the incremental rate of return for the machine : Using Equivalent Uniform Annual Worth method of analysis, determine the Incremental Rate of Return for the machine, which should be selected.

User Account

All Pages