The risk-free rate of interest is found by combining the real rate of interest and the rate paid on U.S. Treasury debt.

Name: The risk-free rate of interest is found by combining the real rate of interest and the rate paid on U.S. Treasury debt.
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The risk-free rate of interest is found by subtracting the expected inflation rate from the nominal interest rate of U.S. Treasury debt. It is not a combination of the real rate of interest and the rate paid on U.S. Treasury debt.

The Risk-Free Rate of Interest Is Found by Combining the Real