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What is the nominal interest rate

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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 U.S.Treasury bonds?

The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year and 3.5% thereafter. The MRP is estimated to be 0.05%(t - 1) where t is the number of years to maturity. What is the nominal interest rate on a 7-yr U.S. Treasury bond?

Reference no: EM131388263

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