Question
A three-year Treasury security currently earns 2.11 percent. Over the next three years, the real risk-free rate is expected to be 1.2 percent per year,
A three-year Treasury security currently earns 2.11 percent. Over the next three years, the real risk-free rate is expected to be 1.2 percent per year, and the inflation premium is expected to be 0.60 percent per year. What's the maturity risk premium on the three-year Treasury security?
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
