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Expected Interest Rate The real risk-free rate is 3%. Inflation is expected to be 1.75% this year and 4.75% during the next 2 years. Assume
Expected Interest Rate The real risk-free rate is 3%. Inflation is expected to be 1.75% this year and 4.75% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Round your answer to two decimal places.
What is the yield on 3-year Treasury securities? Round your answer to two decimal places.
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