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- Real risk-free rate (r)=3.0% - Expected inflation rates: Year 1=3.0%, Year 2=3.5%, Year 3=4.0%, Year 4=4.0%, Year 5 and after =4.5% - Liquidity premium

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- Real risk-free rate (r)=3.0% - Expected inflation rates: Year 1=3.0%, Year 2=3.5%, Year 3=4.0%, Year 4=4.0%, Year 5 and after =4.5% - Liquidity premium (LP)=0.5% - Maturity risk premium (MRP)=0.05(t1)% - Default risk premium (DRP) =2.5% What is the expected rate of return on a 2-year Treasury security? \begin{tabular}{|l|} \hline 6.30% \\ \hline 9.30% \\ \hline 10.00% \\ \hline 7.00% \\ \hline \end{tabular}

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