Suppose that investors expect the inflation rate to be Year Annual Inflation 2014 79 2015 696 2016 396 396 Each year after 2016 Assume that the real risk free rate will remain at a constant 2 percent per year for the foreseeable future. Assume that maturity risk premiums on Treasury bonds and bills are 0.1 for 1.year securities. For securities having maturities in more than one year, maturity risk premiums increase 0.10 percent for each year to maturity up to a limit of 1 percent on 10-year or longer-term Treasury bonds. Thus, the maturity premium for a 2 year secur is 0.20 percent. Calculate the interest rate on 2-year treasury securities. A 152 3.85 C.709 D.9.24 Something Else