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.