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e real risk-free rate is 3%. The inflation rate is expected to be 4% for the next 2 years, 4.5% for Year 3 and 5%
e real risk-free rate is 3%. The inflation rate is expected to be 4% for the next 2 years, 4.5% for Year 3 and 5% thereafter. The liquidity and default risk premiums are equal to zero for Treasury securities T-Bonds yield 08% more than the 4-year T-Bonds. The rmaturity risk premium (MRP) on the 6- 2. Th The 6-year year T-Bonds is 0.95%. What is the MRP on the 4-year T-Bonds
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