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PL Maturity Risk Premium An investor in Treasury securities expects inflation to be 2.5% in Year 1, 3.45% in Year 2, and 4.45% each year

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PL Maturity Risk Premium An investor in Treasury securities expects inflation to be 2.5% in Year 1, 3.45% in Year 2, and 4.45% each year thereafter. Assume that the real risk-free rate is 2.45%, and that this rate will remain constant. Three-year Treasury securities yield 6.40%, while 5-year Treasury securities yield 7.60%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRPs - MRP3? Round your answer to two decimal places. HTML Editores BIVA -A- IX E 11 x X, SE * C 0 TTT 12pt Paragraph

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