1 2 3 4 5 69 6 7 Maturity Risk Premium (MRP) 8 DRP Treasury LP Treasury DRPC5+ LPc5 = DRPC10 + LPC10 10 11 A Interest rate premiums 5-year Treasury yield (T5) 10-year Treasury yield (T10) 10-year Corporate yield (C10) Inflation Premium over 10 years (IP 10) 20 21 12 13 14 Inflation premium over 5 years (IP5) 15 16 DRP 10+ LP 10 17 18 5-year Corporate yield (C5) 19 Real risk-free rate, r* B CO 3.75% 6.35% 9.25% 3.60% 0.00% 0.00% 0.00% C D Formulas #N/A #N/A #N/A #N/A E F