20. Your assistant gathered the following financial data for Japan: The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. What is the required return...

Extracted text: 20. Your assistant gathered the following financial data for Japan: The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. What is the required return on 2-year Treasury bond securities? Since the maturity is only 2 years we will assume that no premium should be required for the maturity risk. a) 6% b) 8% c) 6.33% O d) 8.33% e) None of the above