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    mama400 Posts: 1, Reputation: 1
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    #1

    Mar 20, 2011, 04:48 PM
    The real risk-free rate is 2.3%. Inflation is expected to be 2.55% this year, 4.95% n
    The real risk-free rate is 2.3%. Inflation is expected to be 2.55% this year, 4.95% next year, and then 2.85% 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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    smoothy Posts: 25,490, Reputation: 2853
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    Mar 21, 2011, 05:46 AM

    Read this first: Expectations for the Homework Help board

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