What is the maturity premium


Problem:

Security Annual Percentage Return

U.S. government T-bills                     7.56
Long-term government bonds           10.12
Long-term corporate bonds               11.64
Large capitalization common stocks    13.23
Small capitalization common stocks    15.46

What is the maturity premium?

Use same data as above. What is the small firm stock risk premium?

Please show calculations.

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Finance Basics: What is the maturity premium
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