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Problem 6.05 (Maturity Risk Premium) Check My Work (1 remainin % Problem 6.05 (Maturity Risk Premium) eBook Question 12 ofl Ch eck My Work (1

image text in transcribed Problem 6.05 (Maturity Risk Premium) Check My Work (1 remainin %

Problem 6.05 (Maturity Risk Premium) eBook Question 12 ofl Ch eck My Work (1 remaining) The real risk-free rate is 3.5% and inflation is expected to be 2.25% for the next 2 years. A 2-year Treasury security yields 6.45%. What is the maturity risk premium for the 2-year security? Round your answer to one decimal place.

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