1) The real risk-free rate is 3.5%. Inflation is expected to be 2.5% this year and 3.75% during the next 2 years. Assume that the maturity risk premium is zero.

A) What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

B) What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

2) A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 9.25%. Assume that the liquidity premium on the corporate bond is 0.3%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

3) The real risk-free rate is 2.5%, and inflation is expected to be 4% for the next 2 years. A 2-year Treasury security yields 8%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.