Question: A Treasury note with 5 years to maturity yields 2.3%. The average expected inflation rate over the next 5 years is 0.3%, and the real
A Treasury note with 5 years to maturity yields 2.3%. The average expected inflation rate over the next 5 years is 0.3%, and the real short-term risk-free rate is 1%.
What is the maturity risk premium?
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