PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because - 11242

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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: