Expected Interest Rate
The real risk-free rate is 2.8%. Inflation is expected to be 3.25% this year, 4.45% next year, and then 2.55% 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.
%