The real risk-free rate of interest is 3 inflation is, Financial Management

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The real risk-free rate of interest is 3 inflation is

The real risk-free rate of interest is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-yr and 3-yr US Treasury bonds? (Hint: for US Treasury bonds, DRP=LP=0)

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Financial Management: The real risk-free rate of interest is 3 inflation is

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