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Suppose the real risk-tree rate is 3.00%, the average expected future inflation rate is 2.25%, and a maturity risk premium of 0.10% per year to

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Suppose the real risk-tree rate is 3.00%, the average expected future inflation rate is 2.25%, and a maturity risk premium of 0.10% per year to maturity applies, if MRP =0.10x(t1), where t is the number of years until maturity. What rate of return would you expect to earn on a 2 -year Treasury security? 5.35r 5.7575 5.55% 5.65% 5.45%

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