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Suppose the real risk-free rate is 2.95%, the average expected future inflation rate is 5.00%, and a maturity risk premium of 0.10% per year to

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Suppose the real risk-free rate is 2.95%, the average expected future inflation rate is 5.00%, and a maturity risk premium of 0.10% per year to maturity applies, Le MRP 0.10%(1), where is the years to maturity. What rate of return would you expect on a t-year Treasury security, assuming the pure expectations theory is NOT valid? Include the cross-product term, le, if averaging is required, use the geometrie average. (Round your final answer to 2 decimal places.) a 3.20 b.795 3.20 d, BOS 5.25

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