why risk free rate of different countries is different? I was searching on Bloomberg and I found different risk free rate for different countries...

Question

anonymous · Answer

nominal risk free rate is anyway different coz due to the expected inflation in different countries.real risk free rate should b same in every country.but due to the capital restrictions those may be different.

anonymous · Answer

There are two factors the exchange rate between different countries and the expected inflation rate. You should choose the risk free rate according to the country where the valuation or the security is listed, if you work with USD use the T-Bonds, if you work with JPY use the bonds from Japan, the German Bonds if you work with EUR

anonymous · Answer

risk free rate=real return+inflation........inflation may differ from country to country thats why