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he real risk-free rate is 3 percent. Inflation is expected to be 4 percent this year, 5.5 percent next year, and 6.5 percent thereafter. The
he real risk-free rate is 3 percent. Inflation is expected to be 4 percent this year, 5.5 percent next year, and 6.5 percent thereafter. The maturity risk premium is estimated to be 0.13 (t - 1)%, where t is the number of years to maturity. What is the yield on a 6-year Treasury note? a. 9.57% b. 0.78% c. 7.65% d. 8.92% e. 10.15%
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