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Suppose the real risk-free rate is 4.8%, the average future inflation rate is 2.4%, and a maturity premium of 0.1% per year to maturity
Suppose the real risk-free rate is 4.8%, the average future inflation rate is 2.4%, and a maturity premium of 0.1% per year to maturity applies, i.e., MRP = 0.1% (t), where t is the years to maturity. What rate of return would you expect on a 4-year Treasury security, assuming the pure expectations theory is NOT valid? O 7.0% O 6.4% O 6.7% O 7.3% O 7.6%
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