Maturity risk premium is estimated

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The real risk-free rate is 3.45%. Inflation is expected to be 2.9% this year, 3.7% next year, and 3.05% 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.

Reference no: EM131257068

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