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B3. The real risk-free rate of interest is 1%. Inflation is expected to be 3% in each of the next 2 years and 546 during

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B3. The real risk-free rate of interest is 1%. Inflation is expected to be 3% in each of the next 2 years and 546 during each of the following 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities? (2 points)

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