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What is the nominal interest rate

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Question - The real risk-free rate is 6 percent. Inflation is expected to be 6 percent this year, 8 percent next year, and then 7 percent thereafter. The maturity risk premium is estimated to be 0.0005 X (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 8-year Treasury security?

Reference no: EM133021625

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