Assume that the maturity risk premium is zero what rate of


Suppose the real risk-free rate is 1.25% and the future rate of inflation is expected to be 2.5% for the next 2 years then 3.0% there after. Assume that the maturity risk premium is zero. What rate of return would you expect on a 5-year Treasury security?

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Finance Basics: Assume that the maturity risk premium is zero what rate of
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