What is the yield on three-year treasury securities

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The real risk-free rate of interest is 3%. Inflation is expected to be 1% this year and 6% during each of the next 2 years. Assume that the maturity risk premium is zero.

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

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

Reference no: EM133010698

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