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.
Lenders use risk-based pricing for the interest rates they charge: risky lending (like credit cards) may have an interest rate of almost 30% while less-risky ones like mortgages can be as low as 5%. Payback terms may be as short as a matter of months while others can last 10 years.