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Question 11 (1 point) An investor in Treasury securities expects inflation to be 2.0% in Year 1, 3.0% in Year 2, and 4.0% each year
Question 11 (1 point) An investor in Treasury securities expects inflation to be 2.0% in Year 1, 3.0% in Year 2, and 4.0% each year thereafter. Assume that the real risk-free rate is 0.75% and that this rate will remain constant. Three-year Treasury securities yield 6.00%, while 13-year Treasury securities yield 10.00%, what is the difference in the maturity risk premiums (MRPs) on the two securities? O 2.250% 5.481% 7.731% O 3.231%
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