The maturity risk premium is estimated to be 005 t - 1


The real risk-free rate is 2.15%. Inflation is expected to be 3.4% this year, 4.8% next year, and 3.5% 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? Do not round your intermediate calculations. Round your answer to two decimal places.

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Financial Management: The maturity risk premium is estimated to be 005 t - 1
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