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Assume that the real risk-free rate, r%, is 2% and that inflation is expected to be 9% in Year 1,5% in Year 2 , and

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Assume that the real risk-free rate, r%, is 2% and that inflation is expected to be 9% in Year 1,5% in Year 2 , and 4% thereafter. Assume also that all Treasury securities are highly liquid and free of default risk. If 2 -year and 5 -year Treasury notes both yield 10%, what is the difference in the maturity risk premiums (MRPs) on the two notes; that is, what is MRPs minus MRP2? Round your answer to one decimal place

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