Question : Question
The real risk free rate of : 5878
The real risk free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield on 3-year Treasury securities?
SOLVE USING EXCEL AND SHOW THE FORMULAE USED