PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because:

PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because:
A.
these bonds are essentially free of business risk.
B.
they capture the long-term inflation expectations of investors associated with investments in long-term assets.
C.
these bonds are essentially free of interest rate risk.
D.
none of the above.

 

Solution