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View Full Version : What is nominal risk-free rate


chichef328
Mar 12, 2010, 07:01 PM
you have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk premium = 2%; and maturity risk premium = 1%. What is the mominal risk-free rate?

yhingyhing
Mar 15, 2010, 09:41 PM
the nominal risk-free rate = real risk-free rate + expected inflation so in this NRFR will be 3%+8%= 11%

yhingyhing
Mar 15, 2010, 09:41 PM
the nominal risk-free rate = real risk-free rate + expected inflation so in this NRFR will be 3%+8%= 11%

yhingyhing
Mar 15, 2010, 09:41 PM
the nominal risk-free rate = real risk-free rate + expected inflation so in this NRFR will be 3%+8%= 11%