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The expected annual inflation rates for the coming 5 years are listed in the following table: year 1 0 . 0 4 year 2 0

The expected annual inflation rates for the coming 5 years are listed in the following table: year 10.04 year 20.04 year 30.05 year 40.06 year 50.06 The real risk free rate for a 5year debit security is 3% The current yield for a 5-year Treasury note is 12%. Assume that the liquidity premium for the security is 0% what is the maturity risk premium of the security? A .032 B .05 C .047 D .04

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