Expected interest rate the real risk-free rate is 325, Ask an Expert

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Expected Interest Rate The real risk-free rate is 3.25%. Inflation is expected to be 2.5% this year, 3.85% next year, and then 2.45% 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. %

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Financial Management, Finance

Category:- Financial Management
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