The real risk-free rate of interest is 4 inflation is


The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2 year treasury securities? What is the yield on 3 year treasury securities?

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Finance Basics: The real risk-free rate of interest is 4 inflation is
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