What is the maturity risk premium for two-year security

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Reference no: EM13922029

Maturity Risk Premium

The real risk-free rate is 2.75%, and inflation is expected to be 3.25% for the next 2 years. A 2-year Treasury security yields 9.5%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

Reference no: EM13922029

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