What is the maturity risk premium for given years security

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Question: The real risk-free rate is 2.5%, and inflation is expected to be 3.5% for the next 2 years. A 2-year Treasury security yields 7.75%. What is the maturity risk premium for the 2-year security? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132069730

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