PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: - 3746

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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: