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The real risk free rate is 3% and inflation is expected to be 3% this year, 4% next year, and 3,5% thereafter. The maturity risk
The real risk free rate is 3% and inflation is expected to be 3% this year, 4% next year, and 3,5% thereafter. The maturity risk premium is estimated to be 0.05 x (t-1)%, where t=number of years to maturity. What is the yield on a 7- year treasury note?
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