What is nominal interest rate on treasury security

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Reference no: EM131585058

The real risk-free is 2%. Inflation is expected to be 3% this year, 4% next year, and then 3.5% thereafter. The maturity risk premium is estimated to be 0.0005 times (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

Reference no: EM131585058

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