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The real risk free rate if interest is 4% (k*), Inflation Premium expected for the next 10 years is 3 % and the Maturity Risk
The real risk free rate if interest is 4% (k*), Inflation Premium expected for the next 10 years is 3 % and the Maturity Risk Premium is equal to 0.1(t-1)% where t is equal to a securitys maturity in years. What should the yield (k) be on a 10 year Treasury Bond?
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