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7. Problem 6.12 (Maturity Risk Premium) eBook An investor in Treasury securities expects inflation to be 1.9% in Year 1, 3.45% in Year 2, and

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7. Problem 6.12 (Maturity Risk Premium) eBook An investor in Treasury securities expects inflation to be 1.9% in Year 1, 3.45% in Year 2, and 3.7% each year thereafter. Assume that the real risk-free rate is 2.25% and that this rate will remain constant. Three-year Treasury securities yield 6.00%, while 5-year Treasury securities yield 8.25%. 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

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