What is the yield on 2-year Treasury securities? Do not round Inte % What is the yield on 3-year Treasury securdies? Do not round Intermediate calculations. Round your answer to two decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The real risk-free rate is 2.00%. Inflation is expected to be 1.50% this year and 4.00% during the next 2 years. Assume that the maturity risk premium is zero.
What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.
%
What is the yield on 3-year Treasury securities? Do not round Intermediate calculations. Round your answer to two decimal places.
%
Transcribed Image Text:The real risk-free rate is 2.00%. Inflation is expected to be 1.50% this year and 4.00% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield on 3-year Treasury securities? Do not round Intermediate calculations. Round your answer to two decimal places. %
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