The real risk-free rate is 1.5 percent, and inflation is expected to be 4 percent next year

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The real risk-free rate is 1.5 percent, and inflation is expected to be 4 percent next year and 5 percent for the following 4 years. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities?

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Posted Date: Feb 03, 2023 11:41 PM

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The real risk-free rate is 1.5 percent, and inflation is expected to be 4 percent next year

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Corporate Finance Core Principles and Applications

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