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    Maturity Risk Premium: 2 Year Security

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    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 6.2%. How would I go about calculating the maturity risk premium for this 2-year security?

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    https://brainmass.com/business/finance/maturity-risk-premium-inflation-treasury-security-113165

    Solution Preview

    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 6.2%. How would I go about calculating the maturity risk premium for this ...

    Solution Summary

    The solution calculates the Maturity Risk Premium for a 2-year Treasury security.

    $2.19

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