Question: Assume r* = 2%; 1 = 3%; 1 = 4%; MRP = 0.1% (t). What is the yield on a 2-year Treasury? 5.7% 5.2% 6.2%

Assume r* = 2%; 1 = 3%; 1 = 4%; MRP

Assume r* = 2%; 1 = 3%; 1 = 4%; MRP = 0.1% (t). What is the yield on a 2-year Treasury? 5.7% 5.2% 6.2%

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