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Calculate the maturity risk premium

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Reference no: EM131549952

A 2-year Treasury security currently earns 1.71 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.45 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)

Reference no: EM131549952

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