Question: 9. Problem 6.09 (Expected Interest Rate) eBook The real risk-free rate is 2.25%. Inflation is expected to be 3.25% this year, 4.95% next year, and

9. Problem 6.09 (Expected Interest Rate) eBook The real risk-free rate

9. Problem 6.09 (Expected Interest Rate) eBook The real risk-free rate is 2.25%. Inflation is expected to be 3.25% this year, 4.95% next year, and 2.3% 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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