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11. Problem 5-18 (Determinants of Interest Rates) eBook Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 3% this

11. Problem 5-18 (Determinants of Interest Rates) eBook Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 3% thereafter. The maturity risk premium is estimated to be 0.0003 x (t-1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security? Do not round intermediate calculations. Round your answer to two decimal places. %
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11. Problem 5-18 (Determinants of Interest Rates) Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 3% thereafter. The maturity risk premium is estimated to be 0.0003(t1), where t= number of years to maturity. What is the nominal interest rate on a 7 -year Treasury security? Do not round intermediate calculations. Round your answer to two decimal places. % 11. Problem 5-18 (Determinants of Interest Rates) Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 3% thereafter. The maturity risk premium is estimated to be 0.0003(t1), where t= number of years to maturity. What is the nominal interest rate on a 7 -year Treasury security? Do not round intermediate calculations. Round your answer to two decimal places. %

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