1. The real risk-free rate is 3.25%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 8.75%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.
2. When your credit card number is used to make a purchase online, that you did not authorize, it is called
3. A homeowner just obtained a 30-year, $200,000 mortgage with monthly payments and a nominal annual rate of 9 percent, with monthly payments. What percentage of the total payments made in the first year will go toward repayment of principal?