Example q1: at present, the real risk-free rate of interest is 2%,

EXAMPLE Q1: At present, the real risk-free rate of interest is 2%, while inflation is expected to be 2% for the next 2 years. If a 2-year Treasury note yields 4.5%, what is the maturity-risk premium for this 2-year Treasury note?

 

I have some quiz for Business Finance, very simple calculation problems, if you are willing to help let me know