Q6

The real risk-free rate is 2.95%. Inflation is expected to be 3.95% this year, 4.85% next year, and 2.6% thereafter. The maturity risk premium is estimated to be 0.05(t1)%, where t= number of years to maturity. What is the yleld on a 7 -year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places