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What is the yield on three-year treasury securities

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Reference no: EM132679155

The real risk-free rate of interest is 4%. Inflation is expected to be 3% this year and 5% during the next 2 years. Assume that the maturity risk premium is zero.

Problem 1: What is the yield on 2-year Treasury securities? Round your answer to two decimal places.

Problem 2: What is the yield on 3-year Treasury securities? Round your answer to two decimal places.

Reference no: EM132679155

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