Finance

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%…

Question: You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 3.25% Liquidity premium = 0.6% Maturity risk premium = 1.8% Default risk premium = 2.15% On the …

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.5%… Read More »