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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 risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP =0.10%(t), where t is the years to maturity. What rate of return would you expect on a 1-year Treasury security? (Use the MRP equation given.)
Group of answer choices
10.53%
8.55%
9.00%
10.26%
10.35%

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