The Wall Street Journal Reports That the Rate on 3-Year

The Wall Street Journal reports that the rate on 3-year Treasury securities is 6.50%, and the 6-year Treasury rate is 6.80%. From discussions with your broker, you have determined that expected inflation premium is 2.25% next year, 2.50% in Year 2, and 2.60% in Year 3 and beyond. Further, you expect that real interest rates will be 3.4% annually for the foreseeable future. Calculate the maturity risk premium on the 3-year and the 6-year Treasury security.

A) 3-year: 0.6%; 6-year: 0.80%
B) 3-year: 0.5%; 6-year: 0.90%
C) 3-year: 0.6%; 6-year: 1.20%
D) 3-year: 0.5%; 6-year: 0.80%