If he were that kind of hands-on manager, this mess might not have happened in the first place.
The real risk-free rate is 4%. 1. The real risk-free rate is 4%. Inflation is expected to be 3% this year and 5% during the next 2 years. Assume that the maturity risk premium is zero.
The average money market account interest rate was 0.08 percent during 2014 and 2015. The average one-year certificate of deposit interest rate was 0.20 percent and rose to 0.21 percent in December 2015. The average five-year CD interest rate was between 0.78 percent and 0.79 percent during 2014 and 2015.