The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero.
a) What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.
____%
What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.
____%