Suppose the 20-year Treasury bond rate currently gives 3%. If the inflation premium is 1.7%,...
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Suppose the 20-year Treasury bond rate currently gives 3%. If the inflation premium is 1.7%, and the maturity-risk premium on 20-year Treasury bonds is 0.4% then, assuming that there is no liquidity-risk premium on T-bonds, what is the real risk-free interest rate?
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