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The real short - term risk - free rate is 0 . 5 % and the expected inflation rate is 1 % for each of

The real short-term risk-free rate is 0.5% and the expected inflation rate is 1% for each of the next three years, and 1.5% for each of the following two years. Two-year Treasury notes yield 2.9% and five-year Treasury notes yield 4.1%. What is the maturity risk premium on the two-year note?

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