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Suppose the risk-free rate is 3.50%, and the average future inflation rate is 2.25%, and a maturity risk premium of 0.10% per year to maturity
Suppose the risk-free rate is 3.50%, and the average future inflation rate is 2.25%, 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 one-year Treasury Security?
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