In: Finance
The real risk-free rate is 2.55%. Inflation is expected to be 3.55% this year, 4.45% next year, and 2.6% 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.
%