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An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 4.91% and inflation is expected to be 17.29% each of the next 6 years, what is the yield on a 6-year security with no maturity, default ,or liquidity risk? State your answer as a percent to 2 decimal places.

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Financial Management, Finance

Category:- Financial Management
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