The real risk-free rate is 205 inflation is expected to be


The real risk-free rate is 2.05%. Inflation is expected to be 2.4% this year, 3.8% next year, and then 2.7% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note?

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Finance Basics: The real risk-free rate is 205 inflation is expected to be
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