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Assume that a 3-year Treasury security yields 3.90%. Also assume that the real risk- free...

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Accounting

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Assume that a 3-year Treasury security yields 3.90%. Also assume that the real risk- free rate (r*) is 0.75%, and inflation is expected to be 2.25% annually for the next years. In addition to inflation, the nominal interest rate also includes a maturity risk premium (MRP) that reflects interest rate risk. What is the maturity risk premium for the 3-year security? Round your answer to two decimal places. Your answer should be between 0.00 and 2.92, rounded to 2 decimal places, with no special characters

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