The real risk-free rate of interest is 3 inflation is, Ask an Expert

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The real risk-free rate of interest is 3%. Inflation is expected to be 4% in 2016, jump to 5% in 2017, and run at 6% in 2018. According to the expectations theory (of the term structure), what should the interest rate on 3-year risk-free securities be at the beginning of 2016?

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Financial Management, Finance

Category:- Financial Management
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