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The real risk-free rate is 3.5%. Inflation is expected to be 2.25%

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The real risk-free rate is 3.5%. Inflation is expected to be 2.25% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero.;What is the yield on 2-year Treasury securities? Round your answer to two decimal places.

 

Paper#25730 | Written in 18-Jul-2015

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