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SOLVED: The real risk-free rate is 2.05%. Inflation is expected to be 3.05% this year, 4.75% next year, and 2.3% thereafter. The maturity risk premium is estimated to be 0.05 × (t -1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note?
SOLVED: The real risk-free rate is 2.05%. Inflation is expected to be …
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