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 additional interest rateâthe so-called risk premiumâcharged on mortgages above the interest rate on risk-free U.S. Treasury bonds rose to a peak of 2.2 percent in December 2010, up from 1.5 percent in December 2007, when the Great Recession started.