What is the yield on seven-year treasury note

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1. You want to be a millionaire when you retire in 40 years and can earn an annual return 19) of 12.5 percent. How much more will you have to save each month if you wait 15 years to start saving versus if you start saving at the end of this month?

2. The real risk-free rate is 2.05%. Inflation is expected to be 2.1% this year, 4.3% next year, and 2.8% 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. Round your answer to two decimal places.

Reference no: EM132007407

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