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Use the following information to calculate the interest rate on a 10-year Treasury Note. Inflation: next three years = 5.5% year 4 and beyond =
Use the following information to calculate the interest rate on a 10-year Treasury Note. Inflation: next three years = 5.5% year 4 and beyond = 4.5% Real Risk-Free Rate (r*) = 2% The maturity risk premium is calculated using the formula, MRP = 0.1%* (t 1), where t = number of years to maturity.
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