17. Chapter MC, Section .05, Problem 063.Algo 5-year Treasury bonds yield 5%. The inflation premium (IP) Is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk- free rate, r*? Select the correct answer. a. 1.42% b. 2.38% c. 2.70% d. 1.74% e. 2.06%.
