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Assume r* = 2%; inflation in year 1 = 2%; inflation in year 2 = 4%; MRP = 0.1%(t). What is the yield on a

Assume r* = 2%; inflation in year 1 = 2%; inflation in year 2 = 4%; MRP = 0.1%(t). What is the yield on a 2-year Treasury?

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To calculate the yield on a 2year Treasury bond we can use the Fisher equation which states that the ... blur-text-image

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