A two-year Treasury security currently earns 5.25%. Over the next two years, the real interest rate is
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A two-year Treasury security currently earns 5.25%. Over the next two years, the real interest rate is expected to be 3.00% per year and the inflation premium is expected to be 2.00% per year. What is the maturity risk premium on the two-year Treasury security?
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date: