The real risk-free rate is 3%, and inflation is expected to be 3% this year, 4% next year, and 3.5% thereafter. The maturity risk premiuem is estimated to be 0.05X(t-1)% where t=number of years to maturity. What is the yield on 7-year Treasury note?

6-9 The real risk-free rate is 3%. Inflation is expected to be 3% this EXPECTED INTEREST RATE year, 4% next year, and 3.5% 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