Assume that a 3 year treasury secuirty yields 500 also, Ask an Expert

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Assume that a 3 year Treasury secuirty yields 5.00%. Also assume that the real risk- free rate (r*) is 0.75%., and inlfation is expected to be 2.25% annually for the next 3 yars. In additon to inflation, the nominal interest rate also includes a maturity risk premium (MRP) that reflects interst rate. What is the maturity risk premium for the 3 year secuirt. Round your answer to 2 decimal places. Your answer should be between 0,00 and 2.92 rounded to 2 decimal places.

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Financial Management, Finance

Category:- Financial Management
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