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Price Quoted by Student: $3 
Posted On: 20110214 12:12:40 


Question
Determinant of Interest Rates Problem. The real riskfree rate of interest is 4%. Inflation is expected to be 2% this year and 4% during the next two years. Assume that the maturity risk premium is zero. What is the yield on 2year Treasury securities? What is the yield on 3year Treasury securities? 

Solutions 
Yield on 2year Treasury securities:
Aver 

Attachment 1: The real riskfree rate of interest is 4%.doc

Solution Posted By: Homeworkhelp Posted on:
14022011 




 
