Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 4.40%, and a maturity risk premi

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answerhappygod
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Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 4.40%, and a maturity risk premi

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Suppose the real risk-free rate is 4.20%, the average expectedfuture inflation rate is 4.40%, and a maturity risk premiumis MRP = 0.043%(t-1), where t is the number of years tomaturity. What rate of return would you expect on a 4-yearTreasury security?
Group of answer choices
9.00%
8.46%
7.65%
9.72%
8.73%
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