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17. Chapter MC, Section .05, Problem 063.Algo 5-year Treasury bonds yield 5%. The inflation premium (IP) Is 1.9%, and the maturity risk premium (MRP) on

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17. Chapter MC, Section .05, Problem 063.Algo 5-year Treasury bonds yield 5%. The inflation premium (IP) Is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk- free rate, r*? Select the correct answer. Oa. 1.42% Ob. 2.38% Oc. 2.70% Od. 1.74% Oe. 2.06%

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