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What is the excel formula used to answer the below equation: The expected annual inflation rates for the coming 5 years are listed in the
What is the excel formula used to answer the below equation:
The expected annual inflation rates for the coming 5 years are listed in the following table:
Year | Expected annual inflation rate |
1 | 2% |
2 | 2 |
3 | 3 |
4 | 4 |
5 | 5 |
The real risk-free rate for a five-year debt security is 2%.
The current yield for a five-year Treasury note is 10%. Assume that the liquidity premium for the security is 0%, what is the maturity risk premium of the security?
4.8%
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