Assume the real risk-free rate is 1.5%. Inflation is expected to be 2% this year,...
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Finance
Assume the real risk-free rate is 1.5%. Inflation is expected to be 2% this year, 2.7% next year and 2.2% thereafter. The estimated maturity risk premium is 0.05*(t-1)% where t is the number of years to maturity. What is the yield on a 5-year Treasury bond?
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