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Use the following information to calculate the interest rate on a 10-year Treasury Note. NOTE: maturity risk premium is calculated using the formula, MRP =
Use the following information to calculate the interest rate on a 10-year Treasury Note.
NOTE: maturity risk premium is calculated using the formula, MRP = 0.1% * (t - 1)
| Inflation: next three years | 2.25% |
| Inflation: year 4 and beyond | 4.00% |
| Real Risk-Free Rate (r*) | 2.25% |
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Project Financing Analyzing And Structuring Projects
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811232393, 9789811232398
