Table 1 Maturity (years) 1 5 10 30 Real risk-free interest rate 2% 2% 2% 2%...
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Table 1 Maturity (years) 1 5 10 30 Real risk-free interest rate 2% 2% 2% 2% Inflation expectation 2% 2.50% 3.10% 4.20% Nominal risk-free interest rate 3.94% 4.55% 5.16% 6.28% Treasury security A Treasury security B Maturity (years) Face value Market price 1 $ 1,000.00 $ 962.11 10 $ 1,000.00 $ 604.52 Table 1 Maturity (years) 1 5 10 30 Real risk-free interest rate 2% 2% 2% 2% Inflation expectation 2% 2.50% 3.10% 4.20% Nominal risk-free interest rate 3.94% 4.55% 5.16% 6.28% Treasury security A Treasury security B Maturity (years) Face value Market price 1 $ 1,000.00 $ 962.11 10 $ 1,000.00 $ 604.52
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