Check My Work (1 remaining) 4-7: The Pre-Tax Cost of Debt: Determinants of Market Interest Rates 4-10: The Nominal, or Quoted, Risk-Free Rate of Interest, RF Problem 4-18 Determinants of Interest Rates The real risk-free rate is 2%. Inflation is expected to be 4% this year, 3% next year, and then 5.5% 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? Round your answer to two decimal places. %