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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 short-term risk-free rate is 2.5% and expected to stay constant. The inflation rate is expected to be 1.4% this year, 2% for each of the following 5 years, and 2.5% thereafter. The maturity risk premium is expected to be 0.0004* T, where T is the number of years to maturity. What is the expected yield on a 3-year Treasury note?

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