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Suppose the real risk - free rate is 3 . 0 0 % , the average expected future inflation rate is 5 . 9 0
Suppose the real riskfree rate is the average expected future inflation rate is and a maturity risk premium of per year to maturity applies, ie MRP t where t is the years to maturity. What rate of return would you expect on a year Treasury security? Use the MRP equation given.
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