Determinants of Interest Rates The real risk-free rate is 3%. Inflation is expected to be 4% this year, 3% next year, and then 5.5% thereafter. The maturity risk premium is estimated to be 0.0004(t1), 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