The real risk-free rate is 21 inflation is expected to be


The real risk-free rate is 2.1%. Inflation is expected to be 2.3% this year, 4.35% next year, and 2.35% 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 real risk-free rate is 21 inflation is expected to be
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