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-   -   What is the formula to calculate the maturity risk premium? (https://www.askmehelpdesk.com/showthread.php?t=587629)

  • Jul 15, 2011, 11:08 AM
    mcquisk
    What is the formula to calculate the maturity risk premium?
    A 2-year Treasury security currently earns 8.55 percent. Over the next two years, the real interest rate is expected to be 2.1 percent per year and the inflation premium is expected to be 2.7 percent per year.

    Calculate the maturity risk premium on the 2-year Treasury security.

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