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The real risk-free rate is 2.75%. Inflation is expected to be 3.75% this year, 4.85% next year, and 2.2% thereafter. The maturity risk premium is
The real risk-free rate is 2.75%. Inflation is expected to be 3.75% this year, 4.85% next year, and 2.2% thereafter. The maturity risk premium is estimated to be 0.05 (t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places.
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