Question
A 2-year Treasury security currently earns 3.22 percent. Over the next two years, the real risk-free rate is expected to be 1.90 percent per year
A 2-year Treasury security currently earns 3.22 percent. Over the next two years, the real risk-free rate is expected to be 1.90 percent per year and the inflation premium is expected to be 0.50 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
