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maturity risk premium: An investor in Treasury securities expects inflation to be 2 . 3 % in Year 1 , 2 . 8 % in

maturity risk premium: An investor in Treasury securities expects inflation to be 2.3% in Year 1,2.8% in Year 2, and 3.55% each year thereafter. Assume that the real risk-free rate is 1.85% and that this rate will remain constant. Three-year Treasury securities yield 5.90%, 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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