EXPECTED INTEREST RATE The real risk-free rate is 3%. Inflation is expected to be 3% this year,
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EXPECTED INTEREST RATE The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year, and 3 5% thereafter. The maturity risk premium is estimated to be 0 05 t 1 %, where t = number of years to maturity. What is the yield on a 7-year Treasury note?
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Fundamentals Of Financial Management Concise Edition
ISBN: 9781285065137
8th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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