Solution-What rate of turn expect on four-year treasury

What rate of turn expect on four-year treasury security

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Reference no: EM133002523

Problem 1: Assume the maturity risk premium for alll bonds is .10% per year remaing to maturity, .i.e mRP =0.10%(t), where t is thenumber of years to maturity. if the real risk-free rate is 4.20% and the average expected future inflation rate is 6.50%, what rate of turn would expect on a 4-year treasury security? disregard cross-product terms, i.e. if averaging is required, use thearithemtic average

Reference no: EM133002523

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What rate of turn expect on four-year treasury security

Reference no: EM133002523

Reference no: EM133002523

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