6-12. Maturity risk premium An investor in Treasury securities expects inflation to be 1.75% in Year 1, 3.4% in Year 2, and 3.6% each year thereafter. Assume that the real risk-free rate is 2.3%, and that this rate will remain constant. Three-year Treasury securities yield 6.55%, while 5-year Treasury securities yield 7.50%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5 - MRP3? Round your answer to two decimal places. _______________ % Problem 6-10. Inflation Due to a recession, expected inflation this year is only 2%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2%. Assume that expectations theory holds and the real risk-free rate is r* = 3.25%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 2.25%, what inflation rate is expected after Year 1? Round your answer to two decimal places. _________________%