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6. The real risk-free rate of interest is 2%. Inflation is expected to be 3% the next 2 years and 5% during the next 3
6. The real risk-free rate of interest is 2%. Inflation is expected to be 3% the next 2 years and 5% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 5-year Treasury securities? A. 5.10% B. 6.20% O C. 8.30% D. 6.00%
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