An investor in Treasury securities expects inflation to be 1.6% in Year 1, 1.9% in Year 2, and 2.55% each year thereafter. Assume that the real risk-free rate is 2.55% and that this rate will remain constant. Three-year Treasury securities yield 5.80%, 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. %

An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 5% and inflation is expected to be 13% each of the next 4 years, what is the yield on a 4-year security with no maturity, default, or liquidity risk? (Hint: Refer to "The Links Between Expected Inflation and Interest Rates: A Closer Look".) Round your answer to two decimal places. %