EXPECTED INTEREST RATE The real risk-free rate is 2.95%. Inflation is expected to be 2.55% this year, 4.95% next year, and 2.35% 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. % DEFAULT RISK PREMIUM The real risk-free rate, r*, is 3.35%. Inflation is expected to average 2.45% a year for the next 4 years, after which time inflation is expected to average 4.4% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 11.35%, which includes a liquidity premium of 0.95%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places. %