Find the expected risk-free interest rate over the next year

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Reference no: EM131913017

A financial analyst wants to estimate the risk-free interest rate over the next 9 years. The Federal Reserve Bank estimates 9-year inflation rates to average 2.6% and the local commercial bank currently changes 10% for a 9-year loan.

What is the expected risk-free interest rate over the next 9 years?

Reference no: EM131913017

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