The real risk-free rate is 335 inflation is expected to be, Financial Management

The real risk-free rate is 335 inflation is expected to be

Expected Interest Rate

The real risk-free rate is 3.35%. Inflation is expected to be 2.85% this year, 3.75% next year, and then 3.05% 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? Round your answer to two decimal places.

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Financial Management: The real risk-free rate is 335 inflation is expected to be

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Financial Management: The real risk-free rate is 335 inflation is expected to be

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