Question: 14. A Treasury note with 5 years to maturity yields 3.1%. The average expected inflation rate over the next 5 years is 0.3%, and the

14. A Treasury note with 5 years to maturity yields 3.1%.

14. A Treasury note with 5 years to maturity yields 3.1%. The average expected inflation rate over the next 5 years is 0.3%, and the real short-term risk-free rate is 1%. a What is the maturity risk premium? 15. The real short-term risk-free rate is 0.5% and the expected inflation rate is 1% for each of the next three years, and 2.4% for each of the following two years. Two-year Treasury notes yield 2.9% and five-year Treasury notes yield 4.1% a What is the maturity risk premium on the two-year note? b. What is the maturity risk premium on the five-year

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