Maturity risk premium , Financial Accounting

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

What is the yield on 2-year Treasury securities? %

What is the yield on 3-year Treasury securities? %

 

Posted Date: 3/28/2013 3:45:21 AM | Location : United States







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