QuickHelper

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About QuickHelper

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Teaching Since: May 2017
Last Sign in: 353 Weeks Ago, 2 Days Ago
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  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

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  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Business & Finance Posted 31 May 2017 My Price 5.00

Maturity Risk Premium (Problem 5 - 6)

Question description

 

The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.3%. What is the maturity risk premium for the 2-year security?

Here is the answer below, I just need to see how the problem is solved.

Answer: 0.3%

Answers

(10)
Status NEW Posted 31 May 2017 12:05 PM My Price 5.00

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