The real risk-free rate-yield on treasury note

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Reference no: EM131869812

The real risk-free rate is 2.15%. Inflation is expected to be 3.4% this year, 4.8% next year, and 3.5% 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: EM131869812

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