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(5-18) The real risk-free rate is 2%. Inflation is expected to be 3% this year, 4% next year, and then Determinants of 3.5% thereafter. The
(5-18) The real risk-free rate is 2%. Inflation is expected to be 3% this year, 4% next year, and then Determinants of 3.5% thereafter. The maturity risk premium is estimated to be 0.0005(t1), where Interest Rates t= number of years to maturity. What is the nominal interest rate on a 7-year Treasury security
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