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.
What does the Federal Reserveâs decision to raise interest rates mean for your long-term and retirement investments? After almost a decade of holding the benchmark federal-funds rate near zero, the Federal Reserve raised the interest rate to a range of 0.25% to 0.5%. The board of directors also raised the discount rate to 1% from 0.75%. In the short term, thereâs a chance for ongoing volatility in both the bond and stock markets.