Check My Work 17. 18. 19. 20. 4-7: The Pre-Tax Cost of Debt: Determinants of Market Interest Rates 4-10: The Nominal, or Quoted, Risk-Free Rate of Interest, IRF Problem 4-18 Determinants of Interest Rates The real risk-free rate is 2%. Inflation is expected to be 4% this year, 5% next year, and then 3.5% thereafter. The maturity risk premium is estimated to be 0.0004 x (t-1), wheret - number of years to maturity. What is the nominal interest rate on a 7-year Treasury security? Round your answer to two decimal places. 21. 22. 23. Questions Navigation Menu Check My Work Search A 49 11:49 PM 9/18/2020 hp 0 + e II Insert pri SC delete & 3 4 % 5 6 8 9 O backspace Home V R Y U [ 1 pg up : D H J K. L . enter 29 on Pause