Problem:
The real risk free rate is 1.5%. Inflation is expected to be 2% for this year and next year, and 3% for every year thereafter. The maturity risk premium is expected to be 0.02 x (t-1)% where t = number of years to maturity.
Required:
Question: What is the yield on a 5-year treasury note?
Note: Please show guided help with steps and answer.