The real risk-free rate of interest is 3.8%. Inflation is expected to be 7% this year and 6% during the next 2 years. As
Posted: Wed Jul 06, 2022 6:45 pm
The real risk-free rate of interest is 3.8%. Inflation is expected to be 7% this year and 6% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 1-year treasury securities? Write your answer as a percent (do not type the % character- if your answer is 8.8% write 8.8 in the answer)