(Solved): Suppose the real risk-free rate is 2.3%, the average future inflation rate is 2%, and a maturity pr ...

Suppose the real risk-free rate is $2.3\%$, the average future inflation rate is $2\%$, and a maturity premium of $0.1\%$ per year to maturity applies, i.e., MRP $=$ $0.1\%(t)$, where $t$ is the years to maturity. What rate of return would you expect on a 4-year Treasury security, assuming the pure expectations theory is NOT valid? $5.6\%$ $5.3\%$ $4.7\%$ $4.4\%$ $5.0\%$