What is the maturity risk premium

Reference no: EM131996175

Question: Maturity Risk Premium

The real risk-free rate is 3%, and inflation is expected to be 4% 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.

Reference no: EM131996175

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