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The real risk-free rate is 0.50%. Inflation is expected to be 1.00% this year, 2.00% next year, and 3.0% thereafter. The maturity risk premium is
The real risk-free rate is 0.50%. Inflation is expected to be 1.00% this year, 2.00% next year, and 3.0% thereafter. The maturity risk premium is estimated to be 0.10 (t 1)%, where t = number of years to maturity. What is the nominal interest rate on a 5-year Treasury security?
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