warned not to ignore the cross- product between the real rate and inflation. A 6 - year security with no maturity, default, or liquidity risk has a yield of 19.84 %. If the real risk - free rate is 7% . what average rate of inflation

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.