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The real risk-free rate is 3 %. Inflation is expected to be 3% this year, 4% next year and 3.5 % thereafter. The MRP is

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The real risk-free rate is 3 %. Inflation is expected to be 3% this year, 4% next year and 3.5 % thereafter. The MRP is estimated to be 0.05% (t - 1) where t is the number of years to maturity. What is the nominal interest rate on a 7 - yr U.S. Treasury bond

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