Solved: What is the yield on two year treasury securities, Microeconomics

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What is the yield on two year treasury securities

Discussion:

The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield on 3-year Treasury securities?

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Microeconomics: What is the yield on two year treasury securities

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