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Suppose the real risk-free rate in 3.50%, the average future inflation rate is 2.25%, and a maturity risk premium of 0.10% - 1 per year

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Suppose the real risk-free rate in 3.50%, the average future inflation rate is 2.25%, and a maturity risk premium of 0.10% - 1 per year to maturity applies, i.e., MRP = .10( t-1)%, where "t" is the years to maturity. What rate of return would you expect on a 5- year Treasury Security? 5.95% 6.05% 6.15% 6.25% 201 Question 18 4 pts The Carter Company's bonds mature in 10 years, have a par value of $1,000 and an annual coupon payment of %80. The market interest rate for bonds of similar risk is 9%. What should be the bond's selling price? $935.82 $941.51 $958.15 $964.41

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