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-   -   The real risk-free rate of interest is 3%. Inflation is expected to be 2% this year (https://www.askmehelpdesk.com/showthread.php?t=636080)

  • Feb 14, 2012, 07:46 PM
    jlucero9
    The real risk-free rate of interest 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-yr and 3-yr U.S. Treasury bonds?

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