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Question 5 1 pts Suppose the real risk-free rate is 3.5%, the average future inflation rate is 3.3%, and a maturity premium of 0.05% per
Question 5 1 pts Suppose the real risk-free rate is 3.5%, the average future inflation rate is 3.3%, and a maturity premium of 0.05% per year to maturity applies, i.e., MRP - 0.05%(t), where t is the years to maturity. What rate of return would you expect on a 6-year Treasury security, assuming the pure expectations theory is NOT valid? 7.5% 6.7% 7.7% 6.9% 07.1%
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