# Real risk-free rate of return

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30-day T-bills are currently yielding 8 percent.

Current interest rate premiums:

Inflation premium: 5%

Liquidity premium: 1%

Maturity risk premium: 2%:

Default risk premium: 2%

Calculate the real risk-free rate of return.

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#### Solution Preview

30-day T-bills are currently yielding 8 percent.

Current interest rate premiums:

Inflation premium: 5%

Liquidity premium: 1%

Maturity risk premium: 2%:

Default risk premium: 2%

Calculate the real risk-free rate of ...

#### Solution Summary

The solution calculates the real risk-free rate of return using Inflation premium, Liquidity premium, Maturity risk premium, and Default risk premium.

$2.49