Based on the current market conditions JP Morgan has determined the following interest rate factors. The real risk-free rate, r, is 1.25%, inflation is expected to be 2.40% over the next two years and the 3.50% thereafter. The 10-year maturity risk premium is 1.20%, the 10-year liquidity premium is 0.45%, and the 10-year default risk premium is 0.85%. Given all the previous information calculate the spread between the long-term 10-year Treasury and the short-term 2-year Treasury. What would the yield be on a short-term 3-year Treasury?