Question: Ch 06: End-of-Chapter Problems - Interest Rates Q Search this Back to Assignment Attempts Average/1 7. Problem 6.12 (Maturity Risk Premium) eBook An Investor in

Ch 06: End-of-Chapter Problems - Interest Rates Q Search this Back to Assignment Attempts Average/1 7. Problem 6.12 (Maturity Risk Premium) eBook An Investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 4.35% each year thereafter, Assume that the real risk free rate is 1.05 and that this rate will remain constant. Three-year Treasury securities yleld 6.00%, while 5-year Treasury securities viel 8.15. What is the difference in the matunt risk premiums (MRP) on the two securities; that is, what is MRPE - MRPS? Do not round intermediate calculations. Round your answer to two decimal sac

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