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Interest Rates: Answer all questions. 1-1. The real risk-free rate of interest is 1%. Inflation is expected to be 1% the next la 2 years

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Interest Rates: Answer all questions. 1-1. The real risk-free rate of interest is 1%. Inflation is expected to be 1% the next la 2 years and 2% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities? (10 points) MRP=0 = (1% +1% +2% YE

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