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OpenStudy (danielle):
Risk free rate computations: I want to compute the risk free rate of a 10 year T-bond for an emerging country using the annual inflation differential between the US and this emerging country. Assume rf of a US 10 year T-bond is 1.88% , inflation US this year=3%,Inflation emerging country this year is 9%. how can I compute rf of a 10 year T-bond for the emerging country?
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