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The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6 2%.
The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6 2%. What is the maturity risk premium for the 2-year security? Brigham, Eugene F.; Houston, Joel F.. Fundamentals of Financial Management (Finance Titles in the Brigham Family) (Page 213). South-Western College Pub. Kindle Edition.
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