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Author(s)

Zvi Bodie

Alex Kane

Robert L. McDonald

Analyzes the increase in the variance of return on long-term bonds in the U.S. between 1977 and 1981. Usage of the Capital Asset Pricing Model to help explain the behavior of interest rates; Calculation of the real risk premium on bonds.
Date Published: 1984
Citations: Bodie, Zvi, Alex Kane, Robert L. McDonald. 1984. Why haven't nominal rates declined?. Financial Analysts Journal. (2)16-27.