Question: If the 10- year Treasury bond rate is 4.9%, the inflation premium is 2.1%, and the maturity- risk premium on 10- year Treasury bonds is
If the 10- year Treasury bond rate is 4.9%, the inflation premium is 2.1%, and the maturity- risk premium on 10- year Treasury bonds is 0.3%, assuming that there is no liquidity- risk premium on these bonds, what is the real risk- free interest rate?
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