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What is the yield on a 7-year treasury note

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Reference no: EM132403195

The real risk-free rate is 3%. Inflation is expect to be 3% this year, 4% next year, and 3.5% thereafter. The maturity risk premium is estimated to be 0.05 x (t-1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note?

Reference no: EM132403195

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