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The real risk-free rate is 3%. Inflation is expected to be 1.5% this year and 3.5% during the next 2 years. Assume that the maturity
The real risk-free rate is 3%. Inflation is expected to be 1.5% this year and 3.5% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. %
The real risk-free rate is 3%. Inflation is expected to be 1.5% this year and 3.5% during the next 2 years. Assume that the maturity risk premium is zero.
What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.
%
What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.
%
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
978-0132554909
