What is the yield on three-year treasury securities

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The real risk-free rate is 3.50%. Inflation is expected to be 2.25% this year and 4.50% during the next 2 years. Assume that the maturity risk premium is zero.

Question 1: What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

Question 2: What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132495436

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