Final answer:
The given information allows us to calculate the nominal interest rate of the bond, but the question does not provide enough information to calculate the maturity risk premium.
Step-by-step explanation:
The real risk-free rate, average expected future inflation rate, and the maturity risk premium are all factors that contribute to the calculation of interest rates. In this case, the given real risk-free rate is 4.20%, the average expected future inflation rate is 2.50%, and the maturity risk premium is estimated to be 0.10(t)%, indicating that it varies with the time to maturity of the bond. Based on this information, we can calculate the nominal interest rate of the bond by adding the real risk-free rate and the average expected future inflation rate. Therefore, the nominal interest rate would be 6.70%, or 4.20% + 2.50%. The statement is false because the maturity risk premium is not mentioned in the question, so we cannot determine its value.