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(Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate

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(Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate for a number of different Treasury bonds with different maturity dates. The real risk-free interest rate that you have been told to use is 2.5%, and this rate is expected to continue on into the future without any change. Inflation is expected to be constant over the future at a rate of 2.0%. Since these are bonds that are issued by the US Treasury, they do not have any default risk or any liquidity risk (that is, there is no liquidity-risk premium). The maturity-risk premium is dependent upon how many years the bond has to maturity. The maturity-risk premiums are shown in the popup window. Given this information, what should the nominal rate of interest on Treasury bonds maturing in 0-1 year, 1-2 years 2-3 years, and 3-4 years be? -CTD The nominal rate of interest on Treasury bonds maturing in 0-1 year should be% (Round to two decimal places) (Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate for a number of different Treasury bonds with different maturity dates. The real risk-free interest rate that you have been told to use is 2.5%, and this rate is expected to continue on into the future without any change. Inflation is expected to be constant over the future at a rate of 2.0%. Since these are bonds that are issued by the US Treasury, they do not have any default risk or any liquidity risk (that is, there is no liquidity-risk premium). The maturity-risk premium is dependent upon how many years the bond has to maturity. The maturity-risk premiums are shown in the popup window. Given this information, what should the nominal rate of interest on Treasury bonds maturing in 0-1 year, 1-2 years 2-3 years, and 3-4 years be? -CTD The nominal rate of interest on Treasury bonds maturing in 0-1 year should be% (Round to two decimal places)

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