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Problem 6.12 (Maturity Risk Premium) Question 1 of 10 Check My Work (1 remaining) eBook An investor in Treasury securities expects inflation to be 2.3%

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Problem 6.12 (Maturity Risk Premium) Question 1 of 10 Check My Work (1 remaining) eBook An investor in Treasury securities expects inflation to be 2.3% in Year 1, 3% in Year 2, and 3.95% each year thereafter. Assume that the real risk-free rate is 1.9% and that this rate will remain constant. Three-year Treasury securities yield 6.70%, while 5-year Treasury securities yield 7.35%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP3 - MRP37 Do not round intermediate calculations. Round your answer to two decimal places. % Check My Work (1 remaining)

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