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The pure rate of return is 1.5%. Inflation is expected to be 2% this year and 3% during the next two years. Assume that the

The pure rate of return is 1.5%. Inflation is expected to be 2% this year and 3% during the next two years. Assume that the maturity risk premium for 2 and 3 years security are 1.2% and 1.3% respectively. What is the yield on 3 year Treasury Securities?

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