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eBook An investor in Treasury securities expects inflation to be 1 . 9 % in Year 1 , 2 . 8 % in Year 2
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An investor in Treasury securities expects inflation to be in Year in Year and each year thereafter. Assume that the real riskfree rate is and that this rate will remain constant. Threeyear Treasury securities yield while year Treasury securities yield What is the difference in the maturity risk premiums MRPs on the two securities; that is what is MRP MRP Do not round intermediate calculations. Round your answer to two decimal places.
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