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An investor in Treasury securities expects inflation to be 2 . 3 % in Year 1 , 3 . 1 % in Year 2 ,

An investor in Treasury securities expects inflation to be 2.3%
in Year 1,3.1% in Year 2, and 3.95% each year thereafter. Assume
that the real risk-free rate is 2.35% and that this rate will
remain constant. Three-year Treasury securities yield 5.60%, 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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