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T - bond Suppose the real risk - free rate is 1 . 5 0 % , the average future inflation rate for the next

T-bond
Suppose the real risk-free rate is 1.50%, the average future inflation rate for the next 5 years is 2.25%. The maturity premium increases by 0.4% per year starting from time 1,1.. MRP =0.4%(t-1), where t is the years to maturity. What rate of return would you expect on a S-year Treasury security?
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