Calculate the expected rate on ten-year treasury bond

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The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 3.00 percent and the rate on 20-year Treasury bonds is 5.25 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 10-year Treasury bond purchased ten years from today, E(10r10). (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Expected rate %

Reference no: EM131875572

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