Question regarding the maturity risk premium


Problem:

The real risk-free rate is 2.25%, and inflation is expected to be 3.75% for the next 2 years. A 2-year Treasury security yields 9.5%.

Required:

Question: What is the maturity risk premium for the 2-year security?

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Accounting Basics: Question regarding the maturity risk premium
Reference No:- TGS0890650

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