Expected interest rate-what is yield on seven year treasury

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Reference no: EM131317370

Expected Interest Rate

The real risk-free rate is 2.05%. Inflation is expected to be 2.3% this year, 3.9% next year, and 2.95% 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? Do not round your intermediate calculations. Round your answer to two decimal places.

Reference no: EM131317370

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Expected interest rate-what is yield on seven year treasury : The real risk-free rate is 2.05%. Inflation is expected to be 2.3% this year, 3.9% next year, and 2.95% 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 Treasu..

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