The real risk-free rate is 3.15%. Inflation is expected to be 4.15% this year, 5.05% next year, and 2.1% thereafter.
The maturity risk premium is estimated to be 0.05 x (t-1)%, where t number of years to maturity. What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places. Get Finance homework help today
