The real risk-free rate is 2.15%. Inflation is expected to be 2.15% this year, 4.05% next year, and 3.45% thereafter. The maturity risk premium is estimated to be 0.05 x (t - 1)%, wheret = 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.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The real risk-free rate is 2.15%. Inflation is expected to be 2.15% this year, 4.05% next year, and 3.45% 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 note? Do not round intermediate calculations. Round your answer to two decimal places.
Transcribed Image Text:eBook The real risk-free rate is 2.15%. Inflation is expected to be 2.15% this year, 4.05% next year, and 3.45% 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 note? Do not round intermediate calculations. Round your answer to two decimal places.
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