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Q1 the real risk free rate is 2.5%.Inflation is expected to be 2% this year and 4% during the next 2 years.Assume that the maturity
Q1
the real risk free rate is 2.5%.Inflation is expected to be 2% this year and 4% during the next 2 years.Assume that the maturity risk premium is zero.
a)what is the yield on 2 year treasury securities ?do not round intermediate calculation.Round to two decimals places.
b)what is the yield on 3 year treasury securites ?do not round intermediate calcuation.Round to two deciimals places
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