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interest rate. 4. A thirty-year U.S. Treasury bond has a 4.0 percent perc contrast, a ten-year Treasury bond has an interest rate If inflation is

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interest rate. 4. A thirty-year U.S. Treasury bond has a 4.0 percent perc contrast, a ten-year Treasury bond has an interest rate If inflation is expected to average 1.5 percentage points ten years and thirty years, determine the maturity riskP (MRP) for the thirty-year bond over the ten-year bond. 5. A thirty-year U.S. Treasury bond has a 4.0 perc contrast, a ten-year Treasury bond has an interest rate of 2.5 percent. A maturity risk premium (MRP) is estimated to be 0.2 percentage points for the longer maturity bond. Investors expect inflation to average 1.5 percentage points over the next ten years. over the next ent interest rate. In a. Estimate the expected real rate of return on the ten-year U.S. Treasury bond

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