- Suppose the real risk-free rate is 4.20%, the average expected future inflation rate is 5.70%, and a maturity risk premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the number of years to maturity, hence the pure expectations theory is NOT valid. What rate of return would you expect on a 4-year Treasury security? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average. O .. 9.90% b. 10.30% 5.3.43% O d. 5.64% O e. 10.54%