What is the maturity risk premium on a 5 year bond?
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5 year bond yield 6.50%, and 5 year T bond yield 4.40%, real risk-free rate is r*=2.5%, default risk premium bonds DRP = 0.40%, liquidity premium is LP 1.7%, versus 0 on T bond, inflation premium is 1.5%, What is the maturity risk premium on a 5 year bond?
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