Calculating the maturity risk premium
Question: The real risk free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%. How would I go about calculating the maturity risk premium for this 2-year security?
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Viral vaccines and treatments are difficult to develop, and many viral diseases currently have no vaccine or treatment.
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How would I go about calculating the maturity risk premium for this 2-year security?
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