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The real risk-free rate of return, r , is currently 2.50%. Inflation is expected to be 1.20% for the next 5 years and the 3.20%
The real risk-free rate of return, r , is currently 2.50%. Inflation is expected to be 1.20% for the next 5 years and the 3.20% thereafter. If the 10-year maturity risk premium is currently 1.80%, what is the yield on a long-term 10-year Treasury security?
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