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1. The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.9%.
1. The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.9%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place
.%
1b.
you just purchased a bond that matures in 15 years. The bond has a face value of $1,000 and an 8% annual coupon. The bond has a current yield of 8.37%. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
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