What is the yield on a seven-year treasury note

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Reference no: EM131513451

Expected Interest Rate

The real risk-free rate is 3.45%. Inflation is expected to be 3.2% this year, 4.2% next year, and 2.05% 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: EM131513451

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