Question: please answer FAST!! thank you will upvote 5-year Treasury bonds yield 5.6%. The inflation premium (IP) is 2.5%, and the maturity risk premium (MRP) on
please answer FAST!! thank you will upvote
5-year Treasury bonds yield 5.6%. The inflation premium (IP) is 2.5%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.20%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*?
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