Question
The real risk-free rate is 2 percent, and inflation is expected to be 4 percent next year and 6 percent for the following 4 years.
| The real risk-free rate is 2 percent, and inflation is expected to be 4 percent next year and 6 percent for the following 4 years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
