Question: A Treasury note with 5 years to maturity yields 2.5%. The average expected inflation rate over the next 5 years is 0.4%, and the real

A Treasury note with 5 years to maturity yields 2.5%. The average expected inflation rate over the next 5 years is 0.4%, and the real short-term risk-free rate is 1%.

What is the maturity risk premium?

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