Purchased 10 pcs Mouse @ 230 from TC Ltd and get another 2
pieces as free sample.
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Answer Posted / uma
purchases a/c dr 2760
to tc ltd a/c 2300
to free samples a/c 460
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Assume that the real risk-free rate is 3% and that inflation is expected to be 8% on year 1,5% in year 2,and 4% thereafter.Assume also that all Treasury bonds are highly liquid and free of default risk. If 2-year and 5-year Treasury bonds both yield 10%,calculate the difference in the maturity risk premium on the two bonds.
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