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Maturity Risk Premiums Assume that the real risk-free rate, r*, Is 3% and that inflation is expected to be 8% in Year 1, 5% in

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Maturity Risk Premiums Assume that the real risk-free rate, r*, Is 3% and that inflation is expected to be 8% in Year 1, 5% in Year 2, and 3% 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 (MRP) on the two notes; that is, what is MRPs minus MRP2? Round your answer to two decimal places

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