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The real risk-free rate is 3.5 percent, and inflation is expected to be 3 percent next year and 5 percent for the following 3 years.

The real risk-free rate is 3.5 percent, and inflation is expected to be 3 percent next year and 5 percent for the following 3 years. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities?

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