The real risk-free rate is 2.50%. Inflation is expected to be 1.75% this year and 3.75%...

The real risk-free rate is 2.50%. Inflation is expected to be 1.75% this year and 3.75% during the next 2 years. Assume that the maturity risk premium is zero.

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

__________%

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

__________%

Expert Solution

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jeff jeffy answered 10 months ago

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