A 2-year Treasury security currently earns 1.71 percent. Over the next two years, the real risk-free...
A 2-year Treasury security currently earns 1.71 percent. Over the next two years, the real risk-free rate is expected to be 1.15 percent per year and the inflation premium is expected to be 0.45 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)
Homework Answers
Maturity risk premium = 2-year Treasury security - Real risk-free rate - Inflation premium
Maturity risk premium = 1.71 percent - 1.15 percent - 0.45 percent
Maturity risk premium = 0.11 percent
Add Answer to:
A 2-year Treasury security currently earns 1.71 percent. Over
the next two years, the real risk-free...
A 2-year Treasury security currently earns 2.14 percent. Over the next two years, the real risk-free...
A 2-year Treasury security currently earns 2.14 percent. Over the next two years, the real risk-free rate is expected to be 1.50 percent per year and the inflation premium is expected to be 0.50 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)
A 2-year Treasury security currently earns 1.75 percent. Over the next two years, the real risk-free...
A 2-year Treasury security currently earns 1.75 percent. Over the next two years, the real risk-free rate is expected to be 1.25 percent per year and the inflation premium is expected to be 0.35 percent per year. Calculate the maturity risk premium on the 2-year Treasury security. (Round your answer to 2 decimal places.)
Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earns 5.75 percent. Over...
Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earns 5.75 percent. Over the next two years, the real interest rate is expected to be 3.06 percent per year and the inflation premium is expected to be 2.06 percent per year. What is the maturity risk premium on the 2-year Treasury security? 1.15% 1.00% .63% 5.12%
9.A 2-year Treasury security currently earns 4.63percent. Over the next 2 years, the real interest rate...
9.A 2-year Treasury security currently earns 4.63percent. Over the next 2 years, the real interest rate is expected to be 2.15percentper year and the inflation premium is expected to be 1.75percentper year. If you make the usual assumption that there is no liquidity risk on a Treasury security, what is the maturity risk premium on the 2-year Treasury security? A. morethan 2.00 percent B. more than 1.65 percentbut lessthan 2.00 percent C. more than 1.20 percentbut lessthan 1.65 percent D....
The real risk-free rate is 3%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yield...
The real risk-free rate is 3%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 7.6%. What is the maturity risk premium for the 2-year security?
1) Assume that a 3-year treasury security yields 4.10%. Also assume that the real risk-free rate...
1) Assume that a 3-year treasury security yields 4.10%. Also assume that the real risk-free rate (r*) is 0.75% and inflation is expected to be 2.25% annually for the next 3 years. In addition to inflation, the nominal insterest rate includes a maturity risk premium (MRP) that reflects interest rate risk. What is the maturity risk premium for the 3-year security? Round answer to two decimal places. 2) a treasury bond that matures in 10 years has a yield of...
5 pts Assume that a 3-year Treasury security yields 3.70%. Also assume that the real risk-free...
5 pts Assume that a 3-year Treasury security yields 3.70%. 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 Star security? Round your answer to two decimal places. Your answer should be between 0.00 and 2.92, rounded to...
Assume that a 3-year Treasury security yields 5.20%. Also assume that the real risk-free rate (r')...
Assume that a 3-year Treasury security yields 5.20%. Also assume that the real risk-free rate (r') is 0.75%, and inflation is expected to be 2.25% annually for the next 3 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. 5 pts Your answer should be between 0.00 and 2.92 rounded to...
The real risk-free rate is 2.00%, and inflation is expected to be 3.25% for the next...
The real risk-free rate is 2.00%, and inflation is expected to be 3.25% for the next 2 years. A 2-year Treasury security yields 8.50%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.
The real risk-free rate is 4%. Inflation is expected to be 2% this year, 4% next...
The real risk-free rate is 4%. Inflation is expected to be 2% this year, 4% next year, and then 5.5% thereafter. The maturity risk premium is estimated to be 0.0007 x (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security? Round your answer to two decimal places. %
5 pts Assume that a 3-year Treasury security yields 3.70%. 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 Star security? Round your answer to two decimal places. Your answer should be between 0.00 and 2.92, rounded to...
Assume that a 3-year Treasury security yields 5.20%. Also assume that the real risk-free rate (r') is 0.75%, and inflation is expected to be 2.25% annually for the next 3 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. 5 pts Your answer should be between 0.00 and 2.92 rounded to...
Most questions answered within 3 hours.
-
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 1 hour ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 1 hour ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 2 hours ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 3 hours ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 4 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 5 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 5 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 5 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 5 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 6 hours ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 6 hours ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 6 hours ago