Friday 8 June 2012

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.
 

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