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An investor in Treasury securities expects inflation to be 1 . 5 % in Year 1 , 2 . 0 % in Year 2 ,

An investor in Treasury securities expects inflation to be 1.5% in Year 1,2.0% in Year 2, and 3.15% each year thereafter. Assume that the real risk-free rate is 2.45% and that this rate will remain constant. Three-year Treasury securities yield 5.40%, while 5-year Treasury securities yield 7.00%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5- MRP3? Do not round intermediate calculations. Round your answer to two decimal places.

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