The real risk-free rate of interest is 3. the market, Ask an Expert

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problem: The real risk-free rate of interest is 3%. The market expects that inflation will be 3% every year for the next five years, & then will average 5% a year thereafter. The maturity risk premium is estimated to be MRP t = 0.1(t - 1)%. In other words, the maturity risk premium on a 2 year security is 0.1%/ 0.001. find out the yield on a Treasury bond which matures in 12 years?

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Category:- Basic Finance
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