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You read in The Wall Street Journal that 30-day T-bills are currently yielding 5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums:

• Inflation premium = 3.50%
• Liquidity premium = 0.4%
• Maturity risk premium = 1.70%
• Default risk premium = 2.15%

On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places.