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Sewe te realitete i 3.00%, the average expected future inflation rate is 6.60%, and a maturity risk premium of 0.10% per year to maturity liesiMRP

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Sewe te realitete i 3.00%, the average expected future inflation rate is 6.60%, and a maturity risk premium of 0.10% per year to maturity liesiMRP -0.10, where is the number of years to maturity. What rate of return would you expect on a 1-year Treasury security, sumite pure expectations theory is not valid? Disregard cross product terms, ie, if averaging is required, use the arithmetic average. Palts out of Select one: 9.70 b. 8.8% c. 747% d. 912 e. 8.50%

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