The real risk-free rate is 15 percent inflation is expected, Ask an Expert

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The real risk-free rate is 1.5 percent. Inflation is expected to be 3.5 percent this year, 4 percent next year, and 5 percent thereafter. The maturity risk premium is estimated to be 0.08 ´ (t - 1)%, where t is the number of years to maturity. What is the yield on a 9-year Treasury note?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91780044

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