The real risk-free rate is 2.05%. Inflation is expected to be 3.05% this year, 4.75% next year,
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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 2.3% thereafter. The maturity risk premium is estimated to be 0.05 X (t — 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note?
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Related Book For
Fundamentals Of Financial Management
ISBN: 9781337902571
Concise 10th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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