Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 2% this year, 3% next year, and then 5% thereafter. The maturity risk premium is estimated to be 0.0005(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