The real risk-free rate is 1.5 percent, and inflation is expected to be 2 percent next year and 4 percent for the following 3 years.
The real risk-free rate is 1.5 percent, and inflation is expected to be 2 percent next year and 4 percent for the following 3 years. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities?
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Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
