Question
Atpresent, the realrisk-free rate of interest is 1.51.5%, while inflation is expected to be 1.71.7% for the next two years. If a2-year Treasury note yields
Atpresent, the realrisk-free rate of interest is 1.51.5%,
while inflation is expected to be 1.71.7%
for the next two years. If a2-year Treasury note yields 6.16.1%,
what is thematurity-risk premium for this2-year Treasurynote?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
