Maturity risk premium is zero, Financial Management

The actual risk-free rate is 4%. Inflation is likely to be 3% this year and 4% during the next 2 years. We 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: 3/30/2013 1:19:18 AM | Location : United States







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