The rate of return that can be obtained by investing in financial instruments which have minimal likelihood of defaulting. As such a risk-free rate only exists in theory, it can be implemented practically by using government treasury bonds as the benchmark. These bonds still have a very small amount of risk but the likelihood of the government defaulting is very low.
Related information about risk-free interest rate:
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Risk-free interest rate is the theoretical rate of return of an investment with no risk of financial loss. One interpretation is that the risk-free rate represents the ...
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16 hours ago... daily update will not be posted on that Tuesday. November 30, 2012. Selected Interest Rates. Yields in percent per annum. Instruments, 2012 ...
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Definition of risk-free interest rate: The rate of return that can be obtained by investing in financial instruments which have minimal likelihood of defaulting.
- Risk Free Rate Definition & Application Wiki - WikiWealth
The risk-free interest rate is the interest rate that it is assumed can be obtained by investing in financial instruments with no default risk. However, the financial ...