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2. (6 pts) What is the nominal interest rate (k) of a 5-year U.S. Treasury bond with a real risk-free rate of interest of 1%

2. (6 pts) What is the nominal interest rate (k) of a 5-year U.S. Treasury bond with a real risk-free rate of interest of 1% and inflation expected to be at 3.5% per year? Assume that the maturity risk premium is zero

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