Tuesday, March 28th 2017

Question

What is the current risk free interest rate?

Interesting Question?   (16)   (22)



Answers (3)

27th Apr 2012 by saad - Bangladesh Specific

7%

Like This Answer?   (1)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
19th Nov 2009 by peter matthews

Whilst it is true to say that there is no such thing as "zero risk" when you invest or lend money to anybody, most people would accept that investing in securities issued by the US Government is as close to a zero risk investment as you can find. Unfortunately the yield currently available on 3 month US Government is also just about zero. If you look at longer term investments in US Treasuries, 1 year bonds yield around 0.25% and 10 year bonds yield just under 3.5%. You can also look at CDs issued by banks covered by FDIC insurance. Nobody has ever lost money when investing in accounts covered by this insurance. This could, therefore, also be regarded as "risk free" investing. Interest rates will vary from bank to bank, but will be considerably better than that offered by government securities.

Like This Answer?   (2)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
5th Nov 2009 by Gary

There is in reality no such thing as a risk free interest rate, so the answer would be there isn't a current risk free interest rate. But some choose to measure a risk free interest rate in a proxy sort of way, and so use a three-month T-Bill as that measurement. So whatever the 3-month T-bill interest rates are at that time, that's the way some answer the hypothetical question.

Like This Answer?   (3)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



5th Nov 2009 In Investing 3 Answers | 5769 Views
Subjects: interest rate, risk free interest rate,

Answer This Question / Give Your Opinion
What is the current risk free interest rate?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What Insurance products do Admiral provide in the UK?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What Insurance products do Admiral provide in the UK?
Unanswered Questions in Investing
Which are the biggest hedge funds in the USA?
What is after hours trading nyse?
What companies make up the s&p 500?
Who rings the nyse bell?
What is a treasury yield?

Answered Questions in Investing
What stocks are in the dow 30?
What NASDAQ stand for?
What is the interest rate today?
What is the russell 1000 index?
How is the nasdaq calculated?
Ask A Question
Get opinions on what you want to know:
Specific to any country?