Business, 28.11.2019 02:31 ashtonbillups

The real risk-free rate of interest is 3 percent. inflation is expected to be 4 percent this coming year, jump to 5 percent next year, and run at 6 percent the year after (year 3). according to the expectations theory, what should be the interest rate on 3-year, risk-free securities today?

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The real risk-free rate of interest is 3 percent. inflation is expected to be 4 percent this coming...

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