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Answer options for blank 1: Pure, Real or Nominal Answer options for blank 1: Long term, Short term or Intermediate term The real risk-free rate

image text in transcribedAnswer options for blank 1: Pure, Real or Nominal

Answer options for blank 1: Long term, Short term or Intermediate term

The real risk-free rate of interest may be thought of as interest rate on U.S. Treasury securities in an inflation-free world. A Treasury Inflation Protected Security (TIPS) The inflation premium is equal to the average expected inflation rate over the life of the security

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