Which of the following definitions does not describe the risk-free rate?

A) The interest rate for a stable, prosperous company
B) The pure rate plus an inflation premium
C) The rate on a 90-day treasury bill
D) The conceptual floor for the structure of interest rates
E) All of the above describe the risk-free rate.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.