You are given the following information:
- r* = 1.5%
- Investors expect inflation to average 3% per year into the foreseeable future
- The MRP on 200 year bonds = 2%
- The LP on U.S. and Yubaba Inc. bonds = 0
- The interest rate on a 20 year loan to Yubaba Inc. is 1.25 times the rate on a 20 year loan to the U.S. government.
What is the DRP on a 20 year loan to Yubaba Inc.