Question
A 2-year Treasury security currently earns 5.50 percent. Over the next two years, the real interest rate is expected to be 3.13 percent per year
A 2-year Treasury security currently earns 5.50 percent. Over the next two years, the real interest rate is expected to be 3.13 percent per year and the inflation premium is expected to be 2.13 percent per year. What is the maturity risk premium on the 2-year Treasury security?
Multiple Choice
A. 5.26%
B. 1.00%
C.1.10%
D..24%
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Weathering The Storm A Quick Guide To Safeguarding Your Finances During Economic Recession
Authors: Liam Wilhelm
1st Edition
979-8864393628
