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You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent

You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent and the inflation premium is 3 percent.US Treasury bills are risk free. What should be the yield of the US Treasury bills? Use multiplicative form.

Should be somewhere between 5-7 %!

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