Suppose the real risk-free rate is 3.50% and the future rate of inflation is expected to be constant at 4.20%. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is valid? (Include cross-product terms, i.e., if averaging is required, use the geometric average.) (Round your final answer to 2 decimal places.) (Do not enter "%" in answer blank, just the answer in numerical form carried out 2 decimal spaces.)