Maturity risk premium on two-year treasury security

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Reference no: EM131883162

A 2-year Treasury security currently earns 1.95 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 0.60 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)

Maturity risk premium = %

Reference no: EM131883162

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