Question: Save Submit Assignment for Grading roblem 6.12 (Maturity Risk Premium) Question 1 of 10 Check My Work (1 remaining) eBook An investor in Treasury securities

 Save Submit Assignment for Grading roblem 6.12 (Maturity Risk Premium) Question

Save Submit Assignment for Grading roblem 6.12 (Maturity Risk Premium) Question 1 of 10 Check My Work (1 remaining) eBook An investor in Treasury securities expects inflation to be 1.55% in Year 1, 3.2% in Year 2, and 4.1% each year thereafter. Assume that the real risk-free rate is 2.05% and that this rate will remain constant. Three-year Treasury securities yield 6.65%, while 5- year Treasury securities yield 7.20%. What is the difference in the maturity risk premiums (MRP) on the two securities; that is, what is MRPS - MRP3? Do not round intermediate calculations. Round your answer to two decimal places, % At 0 5:10 PE 10/13/20

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