What is the yield on a treasury note

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Question - The real risk-free rate is 2.85%. Inflation is expected to be 2.95% this year, 4.7% next year, and 2.35% 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.

Reference no: EM132185183

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