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17. Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity

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17. Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t-1), where t is the years to maturity. What rate of return would you expect on a 6-year Treasury security? a. 5.95% b. 6.05% 6.15% d. 6.25% 6.35% C e

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