Real risk-free rate is 2.25% (r*). Inflation is expected to be 2.5% (IP) this year and 4.25% during the next 2 years. Assume maturity risk premium is 0. What is the yield on 2 year Treasury securities. What is the yield on 3 year Treasury securities?
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Home » Business » Real risk-free rate is 2.25% (r*). Inflation is expected to be 2.5% (IP) this year and 4.25% during the next 2 years. Assume maturity risk premium is 0. What is the yield on 2 year Treasury securities.