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Naakyiaa
May 15, 2010, 05:06 PM
The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury security? What is the yield on 3-year Treasury security?

ArcSine
May 16, 2010, 05:03 AM
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