What is the yield on seven-year treasury note

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Reference no: EM131343118

The real risk-free rate is 2.75%. Inflation is expected to be 2.9% this year, 4.9% next year, and then 2.35% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Round your answer to two decimal places.

Reference no: EM131343118

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