Intro

A Treasury note with $5$ years to maturity yields $2\mathrm{.}7\%.$ The average expected inflation rate

over the next $5$ years is $0\mathrm{.}6\%,$ and the real short$-$term risk$-$free rate is $1\%.$

Part $1$

Attempt $\frac{1}{3}$ for $10$ pts$.$

What is the maturity risk premium?