Find the maturity risk premium for given year security

Reference no: EM132069766

Question: The real risk-free rate is 3.5%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 8.5%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132069766

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