P= 3% Maturity Risk Premium px -3% + rotz = 6.2% MRP = ? Answer: = n* + P + MRP = 6.29% 3%:+ 3-- MRP = 6.2% 6% MRP = 6.2% GSM + 3.0t 1 MRP 26.2% -60% and MRP=0.2% 37 2 6-5 MATURITY RISK PREMIUM The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%. What is the maturity risk premium for the 2-year security? Istin caurities in a developing nation DIFE