What is the real risk free rate

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Reference no: EM131307013

5-year Treasury bonds yield 6.4%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%.

There is no liquidity premium on these bonds. What is the real risk-free rate, r*?

Reference no: EM131307013

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