Question: What is the excel formula used to answer the below equation: The expected annual inflation rates for the coming 5 years are listed in the

What is the excel formula used to answer the below equation:

The expected annual inflation rates for the coming 5 years are listed in the following table:

Year

Expected annual inflation rate

1

2%

2

2

3

3

4

4

5

5

The real risk-free rate for a five-year debt security is 2%.

The current yield for a five-year Treasury note is 10%. Assume that the liquidity premium for the security is 0%, what is the maturity risk premium of the security?

4.8%

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