Question
The real rate of interest over the next two years is expected to remain at 2% per annum. Inflation is expected to be 1.5% per
The real rate of interest over the next two years is expected to remain at 2% per annum. Inflation is expected to be 1.5% per annum over the next two years. At the last auction, 2-year T-Notes were priced to yield 4%. What is the maturity risk premium for two year maturities?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
