What is yield on three-year treasury securities

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The real risk-free rate is 2.25%. Inflation is expected to be 1.5% this year and 4.75% during the next 2 years. Assume that the maturity risk premium is zero.

A. What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131336368

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