A 2-year treasury security currently earns 199 percent over


A 2-year Treasury security currently earns 1.99 percent. Over the next two years, the real interest rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.70 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)

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Financial Management: A 2-year treasury security currently earns 199 percent over
Reference No:- TGS01564818

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