A two-year treasury security currently earns 513 percent


A two-year Treasury security currently earns 5.13 percent. Over the next two years, the real interest rate is expected to be 2.15 percent per year and the inflation premium is expected to be 1.75 percent per year. Calculate the maturity risk premium on the two-year Treasury security.

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Financial Management: A two-year treasury security currently earns 513 percent
Reference No:- TGS01371425

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