Question: Attempts Keep the Highest/2 4. Problem 6.09 (Expected Interest Rate) eBook The real risk-free rate is 2.75%. Inflation is expected to be 3.75% this year,
Attempts Keep the Highest/2 4. Problem 6.09 (Expected Interest Rate) eBook The real risk-free rate is 2.75%. Inflation is expected to be 3.75% this year, 5.25% next year, and 2.7% thereafter. The maturity risk premium is estimated to be 0.05 (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
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