EXPECTED INTEREST RATE the real risk free race a 33%. Infation is expected to be 3.03% this year 4.05% next year and 2.1% thereafter The maturity risk premium is estimated to be 0.05 1%, where t number of years to maturity. What is the yield on a 7-year Treasury nete? Do not round your intermediate calculations. Round your answer to two

ECON MICRO
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ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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EXPECTED INTEREST RATE
The real risk free rate is 3.3%. Inflation is expected to be 3.03% this year, 4.05% next year and 2.1% 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
Transcribed Image Text:EXPECTED INTEREST RATE The real risk free rate is 3.3%. Inflation is expected to be 3.03% this year, 4.05% next year and 2.1% 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
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