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( Interest rate determination ) If the 1 0 - year Treasury bond rate is 5 . 9 % 5 . 9 % , the

(Interest rate determination) If the10-year Treasury bond rate is 5.9%5.9%, the inflation premium is 1.5%1.5%, and the maturity-risk premium on10-year Treasury bonds is 0.7%0.7%, assuming that there is no liquidity-risk premium on these bonds, what is the real risk-free interest rate?

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