Question: The real risk - free rate is 2 . 4 0 % . Inflation is expected to be 2 . 8 0 % this year

The real risk-free rate is 2.40%. Inflation is expected to be 2.80% this year and 7.70% next year. What is the yield on 2-year T-securities (report the percentage number with two decimal places and do not include % in your answer)?

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