An investor in Treasury securities expects inflation to be 2.1% in year 1, 2.7% in year 2 and 3.65% each year afterwards.
Assume that the real risk free rate is 1.95% and that this rate will remain constant. Three year Treasury securities yield 5.2%, while 5-year Treasury securities yield 6%.
What is the difference in the maturity risk premiums on the two securities (MRP5-MRP3)?