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The expected annual inflation rates for the coming 5 years are listed in the following table: Year Expected annual inflation rate 1 4% 2 4

The expected annual inflation rates for the coming 5 years are listed in the following table:

Year Expected annual inflation rate

1 4%

2 4

3 3

4 4

5 5

The real risk-free rate for a five-year debt security is 2%.

The current yield for a five-year Treasury note is 9%. Assume that the liquidity premium for the security is 0%, what is the maturity risk premium of the security?

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