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The expected annual inflation rates for the coming 5 years are listed in the following table: Year Expected annual inflation rate 1 2% 2 3
The expected annual inflation rates for the coming 5 years are listed in the following table: Year Expected annual inflation rate 1 2% 2 3 3 4 4 4 5 4.5 If the real risk-free rate for a three-year debt security is 1%. What is the nominal risk-free rate for the security?
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