What is the nominal risk-free rate for bonds

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Question - The US Federal Reserve is forecasting the rate of inflation for the years 2022, 2023 and 2024 will be 4.5%, 3.0% and 2.5%, respectively, and then 2.0% every year thereafter. If you assume the real risk free rate for bonds that mature in 5 years is 3.0% (and it already reflects a maturity risk premium of .15%), what is the nominal risk-free rate for bonds maturing at the end of the same 5 years?

Reference no: EM133121703

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