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Business, 29.02.2020 02:57 kenzielema12

The real risk-free rate is 2.05%. Inflation is expected to be 3.05% this year, 4.75% next year, and 2.3% thereafter. The maturity risk premium is estimated to be 0.05(t- 1)%, where t=5 number of years to maturity. What is the yield on a 7-year Treasury note?

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The real risk-free rate is 2.05%. Inflation is expected to be 3.05% this year, 4.75% next year, and...
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