What will the maturity risk premium for the 30 year bond

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A 35 year U.S. Treasury bond has a 4.0% interest rate. In contrast, a 10 year Treasury bond has an interest rate of 3.7%. If inflation is expected to average 1.5 percentage points over both the next 10 years and 30 years, what will the maturity risk premium for the 30 year bond over the10 year bond be?

Reference no: EM13334718

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