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EXPECTED INTEREST RATE The real risk-free rate is 2.25%. Inflation is expected to be 3.4% this year, 5% next year, and 2.5% thereafter. The
EXPECTED INTEREST RATE The real risk-free rate is 2.25%. Inflation is expected to be 3.4% this year, 5% next year, and 2.5% thereafter. The maturity risk premium is estimated to be 0.05 x (t-1) %, where t number of years to maturity. What is the yield on a 7-year Treasury note? Do not round your intermediate calculations. Round your answer to two decimal places. %
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