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The real short - term risk - free rate is 2 . 5 % and expected to stay constant. The inflation rate is expected to
The real shortterm riskfree rate is and expected to stay constant. The inflation rate is expected to be this year, for each of the following years, and thereafter. The maturity risk premium is expected to be T where T is the number of years to maturity. What is the expected yield on a year Treasury note?
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