Question: Mohammed is trying to calculate the interest rate on 3- year treasury securities to decide if it is worth investing in. The real risk-free rate

Mohammed is trying to calculate the interest rate on 3- year treasury securities to decide if it is worth investing in. The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent the next 2 years and 6 percent during the next 3 years after that. It is assumed that the maturity risk premium is zero. What is the yield that Ali calculates on 3-year Treasury securities

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