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MC Qu. 7 Determinants of Interest Rate for Individual Securities A 2-year... Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earms
MC Qu. 7 Determinants of Interest Rate for Individual Securities A 2-year... Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earms 5.75 percent. Over the next two years, the real interest rate is expected to be 310 percent per year and the infletion premium is expected to be 210 percent per year. What is the maturity risk premium on the 2-year Treasury security? Multiple Choice 115% 520% 55% 1.00%
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