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Determinant of Interest Rates The real risk - free rate of interest is 4 % . Inflation is expected to be 2 % this year

Determinant of Interest Rates
The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 5% during each of the next 2 years. Assume that the maturity risk premium is zero.
What is the yield on 2-year Treasury securities? Round your answer to two decimal places.
%
What is the yield on 3-year Treasury securities? Round your answer to two decimal places.
%

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