REAL RISK-FREE RATE You read in The Wall Street Journal that 30-day T-bitts 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%