A 2-year treasury security currently earns 1.94 percent., Ask an Expert

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A 2-year Treasury security currently earns 1.94 percent. Over the next two years, the real interest rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.50 percent per year. find out the maturity risk premium on the 2-year Treasury security.

Maturity Risk Premium __________%

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