The real risk-free rate is 2 and inflation is expected to, Financial Management

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The real risk-free rate is 2 and inflation is expected to

Maturity Risk Premium

The real risk-free rate is 2%, and inflation is expected to be 2.75% for the next 2 years. A 2-year Treasury security yields 10%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

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