1. You are given the following interest rates: 3-month Treasury Bill 1% 20-year Treasury Bond 3% 20-year AT&T Corporate Bond 8% Calculate (1) maturity risk premium (2) default risk premium of AT&T corporate bond (3) total risk premium of AT&T corporate bond 2. What is Fisher equation? Based on information given in question 1. If expected inflation rate is 0.6%, how much is real interest rate? 3. What is term structure of interest rates? What are the three hypotheses of the term structure of interest rates? 4. What is yield curve? Based on liquidity preference hypothesis, what is the shape of the yield curve? 5. What is an inverted yield curve? What is people's expectation about interest rate movement when yield curve is inverted? 6. Find current Treasury security interest rates from the Wall Street Journal. Then draw a yield curve. based on these Treasury security interest rates. What is the shape of current yield curve? What is people's expectation about interest rate movement? Should you invest on short-term or long-term securities now