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As a portfolio manager at a dynamic investment fund, you are assessing the potential investment in government bonds and corporate bonds, considering the current economic
As a portfolio manager at a dynamic investment fund, you are assessing the potential investment in government bonds and corporate bonds, considering the current economic forecasts and market conditions. The latest economic reports suggest the following:
The real riskfree rate is currently estimated at
Inflation is anticipated to average over the next years.
A year Treasury bond is observed to yield annually
Calculating the maturity risk premium for the year Treasury bond.
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