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You are given the following information: Real risk free rate is 2.0%, Inflation is expected to be 2.0%, Maturity risk premium is 1%, Default risk

You are given the following information: Real risk free rate is 2.0%, Inflation is expected to be 2.0%, Maturity risk premium is 1%, Default risk premium is 2%. What is the expected interest rate for a U.S. Treasury bill?

2.5%

3.5%

4.0%

7.0%

None of the above

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