Determinants of Interest Rates

The real risk$-$free rate is $4\%.$ Inflation is expected to be $4\%$ this year, $5\%$ next year, and then $5\mathrm{.}5\%$ thereafter. The maturity risk premium is estimated to be $0\mathrm{.}0007(t-1),$ 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.