The maturity risk premium is estimated to be

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The real risk-free rate is 2.9%. Inflation is expected to be 2.15% this year, 3.75% next year, and then 3.1% 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.

Reference no: EM131346480

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