EXPECTED INTEREST RATE The real risk-free rate is 2.55%. Inflation is expected to be 2.75% this...

EXPECTED INTEREST RATE

The real risk-free rate is 2.55%. Inflation is expected to be 2.75% this year, 4.25% next year, and 3.15% 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 your intermediate calculations. Round your answer to two decimal places.

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Expert Solution

jeff jeffy answered 1 year ago

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