Expected interest rate. The real risk-free rate is 3%. Inflation is expected to be 2% this year and


Question: Expected interest rate. The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next two years. Assume that the maturity risk premium is zero. What is the yield on 2 year treasury securities? What is the yield on 3 year treasury securities?

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Type of Deliverable: Word Document

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