5 year treasury notes are currently yielding 5.75%, and you have found the following interest premium that relate to this investment. Inflation premium 2.50% Liquidity premium 0.00% Default risk premium 0.00% Maturity risk premium 2.00% Given the above information, what is the real risk free rate of return?

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.