I have a list of monthly returns of a 10 year Govt Bond. I am not sure if this is a good proxy for the monthly risk free rate of return.
Can somebody suggest how I can derive the monthly risk free rate of return from this monthly return of Govt Bonds. Ofcourse, this is just a simple case. I don't want to take in account any default probabilities of the Govt (Sovereign risk etc).
Simple put is the monthly return of a 10 Year Govt bond a good proxy for risk free rate over a month?