The real risk free rate is 15 inflation is expected to be 2


The real risk free rate is 1.5%. Inflation is expected to be 2% for this year and next year, and 3% for every year thereafter. The maturity risk premium is expected to be 0.02 x (t-1)% where t = number of years to maturity. What is the yield on a 5-year treasury note?

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Finance Basics: The real risk free rate is 15 inflation is expected to be 2
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