PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: - 3712

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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: