Business, 09.03.2020 19:34, babbybronx

12. The real risk-free rate is 3%, and inflation is expected to be 3% this year, 4% next year, and 3.5% thereafter. The maturity risk premium is estimated to be 0.05 X (t-1)% where t = number of years to maturity. What is the yield on a 7-year Treasury note?

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12. The real risk-free rate is 3%, and inflation is expected to be 3% this year, 4% next year, and 3...