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The Wall Street Journal reports that the yield on a nine-month Treasury bond is 2.3 percent, the yield on a three-year Treasury bond is 2.9 percent, and the yield on a 10-year Treasury bond is 4.3 percent. Although no liquidity premium is associated with Treasury securities, there is a maturity risk premium (MRP) for Treasuries with maturities equal to one year or greater.

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Question: What is the MRP?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164355

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