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The real risk-free rate is 2.50%. Inflation is expected to be 1.75% this year and 3.75%...

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Finance

The real risk-free rate is 2.50%. Inflation is expected to be1.75% this year and 3.75% during the next 2 years. Assume that thematurity risk premium is zero.

What is the yield on 2-year Treasury securities? Do not roundintermediate calculations. Round your answer to two decimalplaces.

__________%

What is the yield on 3-year Treasury securities? Do not roundintermediate calculations. Round your answer to two decimalplaces.

__________%

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The real risk-free rate is 2.50%. Inflation is expected to be1.75% this year and 3.75% during the next 2 years. Assume that thematurity risk premium is zero.What is the yield on 2-year Treasury securities? Do not roundintermediate calculations. Round your answer to two decimalplaces.__________%What is the yield on 3-year Treasury securities? Do not roundintermediate calculations. Round your answer to two decimalplaces.__________%

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