Question
The real risk-free rate of interest is 1%. Inflation is expected to be 7% this year and 6% during the next 2 years. Assume that
The real risk-free rate of interest is 1%. Inflation is expected to be 7% this year and 6% during the next 2 years. Assume that the maturity risk premiums is zero. What is the yield on 1-year treasury securities? Write your answer as a percent (do not type the % character - if your answer is 8.8% write 8.8 in the answer).
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
