Expected Interest Rate
The real risk-free rate is 2.5%. Inflation is expected to be 2.25% this year and 4.5% 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.
%