The real risk-free rate is 25 and inflation is expected to


The real risk-free rate is 2.5%, and inflation is expected to be 3.5% for the next 2 years. A 2-year Treasury security yields 8%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

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Financial Management: The real risk-free rate is 25 and inflation is expected to
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