Question: Saved A two - year Treasury security currently earns 5 . 2 5 percent. Over the next two years, the real interest rate is expected

Saved
A two-year Treasury security currently earns 5.25 percent. Over the next two years, the real interest rate is expected to be 3.00 peres year and the inflation premium is expected to be 200 percent per year. What is the maturity risk premium on the two-year Treasury
Multiple Choice
0.25 percent
1.00 percent
1.05 percent
Saved A two - year Treasury security currently

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