11

What would be the interest race on a 5-year freasury bond given the foliowing indormasony kpr=24 UA = 0.1\% for a 1-year laan, increasite by 0.1% each adatisnal year. 1R=0S. DA- 0 for a 1 year ioan, Q.1 th for a 2 yey ioan, increasing by 0.1 wh for each adieional year. Expetted inflation rates: Year 1=3.0% Year 2=4.0% Year 3 and thereater 500t 6.7 5.345 11.514 6.94 What would be the interest race on a 5-year freasury bond given the foliowing indormasony kpr=24 UA = 0.1\% for a 1-year laan, increasite by 0.1% each adatisnal year. 1R=0S. DA- 0 for a 1 year ioan, Q.1 th for a 2 yey ioan, increasing by 0.1 wh for each adieional year. Expetted inflation rates: Year 1=3.0% Year 2=4.0% Year 3 and thereater 500t 6.7 5.345 11.514 6.94