Question: Please answer quickly for a like 28 The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming

Please answer quickly for a like
28
Please answer quickly for a like 28 The real risk-free rate

The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). According to the expectations theory, what should be the interest rate on 3-year, risk-free securities today? O 8.40% O 8.00% O 8.20% O 8.60% O 8.80%

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