PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: - 1267

Solution Posted by
Solution Detail
Price: $1.25
  • From: ,
  • Posted on: Sun 11 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

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.

 
Solution Description

PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: <