The inflation risk premium on a bond is 2 percent, the U.S. T-bill rate is 5 percent, the maturity risk premium on the bond is 3 percent, the default risk premium on the bond is 2 percent, and the liquidity risk premium on the bond is 1 percent
Calculate its nominal rate of return.
A) 16%
B) 13%
C) 11%
D) 9%
B
Business
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A) fashion goods. B) products with a long shelf life. C) expensive products. D) those with infrequent design changes.
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