What is the maturity premium for this 2-year treasury note

Reference no: EM13274129

Currently the real risk-free rate of interest is 1.5% and inflation is expected to be 3.00% for the next two years. If a 2-year Treasury note yields 7.25%, what is the maturity premium for this 2-year Treasury note? (Hint: Assume that the government will not default and Treasury notes can be converted to cash immediately)

Reference no: EM13274129

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