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Expected nominal rate of return on three-year treasury bond

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Suppose today is January 2, 2020 and investors expect the annual inflation rates in 2020, 2021, and 2020 to be 1.8 percent, 2.2 percent, and 2.3 percent, respectively. If the real risk-free rate is 3.0 percent, what is the expected nominal rate of return on a three-year Treasury bond?

Reference no: EM132481822

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