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QUESTION
what is the yield on 2-year T securities. Real risk free rate of interest is 4%, inflation expected to be 2%,
what is the yield on 2-year T securities. Real risk free rate of interest is 4%, inflation expected to be 2%,
during next two years 4%, maturity risk premium, par value is $1,000. I got 7.00%;
What is the yield on 3-year T securities. I got 6.00% can you please tell me if that is the right answer?
reat risk free rate4%inflation of year 12%inflation of year 22%Maturity Risk Premium4%Yield for 2 Years4%+ ( 2%+2%)/2+4%Yield for 2 Years10.00%reat risk free rate4%inflation of year...