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