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Suppose the real risk-free rate of interest is r - 3% and it is expected to remain constant over time. Inflation is expected to be

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Suppose the real risk-free rate of interest is r - 3% and it is expected to remain constant over time. Inflation is expected to be 1.40% per year for the next two years and 3.80% per year for the next three years. The maturity risk premium is 01 (-17%, where t is number of years to maturity, a liquidity premium is 0.25%, and the default risk premium for a corporate bond is 1.90%. The average inflation during the first 3 years is What is the yield on a 3-year Treasury bond? 7.55% 5.40% 5.20% 3.20% What is the yield on a 3-year BBB-rated bond? 5.65% 5.40% 7.30% 7.55% If the yield on a 5-year Treasury bond is 6.24% and the yield on a 6-year Treasury bond is 6.70%, the expected Inflation in 6 years is (Hint: Do not round intermediate calculations.) Suppose the real risk-free rate of interest is r - 3% and it is expected to remain constant over time. Inflation is expected to be 1.40% per year for the next two years and 3.80% per year for the next three years. The maturity risk premium is 01 (-17%, where t is number of years to maturity, a liquidity premium is 0.25%, and the default risk premium for a corporate bond is 1.90%. The average inflation during the first 3 years is What is the yield on a 3-year Treasury bond? 7.55% 5.40% 5.20% 3.20% What is the yield on a 3-year BBB-rated bond? 5.65% 5.40% 7.30% 7.55% If the yield on a 5-year Treasury bond is 6.24% and the yield on a 6-year Treasury bond is 6.70%, the expected Inflation in 6 years is (Hint: Do not round intermediate calculations.)

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