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.

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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