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You recently read in a financial magazine that the yield on 6 - month Treasury bills is currently 6 . 8 % . Your cousin,
You recently read in a financial magazine that the yield on month Treasury bills is currently Your cousin, who is a financial analyst at Trustworthy Investments, has provided you with the following estimates of current interest rate premiums:
Inflation premium:
Liquidity premium:
Maturity risk premium:
Default risk premium:
Given this information, calculate the real riskfree rate of return.
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