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The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year, and then 3.5% thereafter. The maturity risk premiums
The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year, and then 3.5% thereafter. The maturity risk premiums is expected to be 0.05 X(t-1)%, where t= number of years to maturity. What is the yield on a 7-year treasury
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