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You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.25 percent and the inflation...
You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.25 percent and the inflation premium is 3 percent. US Treasury bills are risk free. What should be the yield of the US Treasury bills? Use multiplicative form.