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6. eBook The real risk-free rate is 1.95%. Inflation is expected to be 2.95% this year, 4.75% next year, and 2.4% thereafter. The maturity risk
6.
eBook The real risk-free rate is 1.95%. Inflation is expected to be 2.95% this year, 4.75% next year, and 2.4% 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 placesStep by Step Solution
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