The real risk-free rate is 2.25%, and inflation is expected to be 2.25% for the next 2 years. A 2-year Treasury security yields 8%. What
The real risk-free rate is 2.25%, and inflation is expected to be 2.25% for the next 2 years. A 2-year Treasury security yields 8%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.
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Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
