Expected real interest rate is the interest rate of an investors receives or expects to receive after allowing inflation. Yield on two-year treasury bond is 5% and one year is 4%. The maturity risk premium is zero.

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Chapter 5, Problem 7PROB

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Expected real interest rate is the interest rate of an investors receives or expects to receive after allowing inflation.

Yield on two-year treasury bond is 5% and one year is 4%. The maturity risk premium is zero.

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