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5-year Treasury bonds yield 4.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on T-bonds is 0.4%. What is the real
5-year Treasury bonds yield 4.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on T-bonds is 0.4%. What is the real risk-free rate, r*?
2.10% 2.39% 2.21% 2.58% 1.91%
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Financial Mathematics Derivatives And Structured Products
Authors: Chan
1st Edition
9811336954, 978-9811336959
