123456 Assume that the real risk-free rate of return, pis 3 percent, and it will remain at that level far into the future. Also assume that maturity risk premiums on Treasury bonds increase from 0 percent for bonds that mature in one year or less to a maximum of 2 percent, and MRP increases by 0.2 percent for each year to maturity that is greater than one year (that is, MRP equals 0.2 percent for a two-year bond, 0.4 percent for a three-year bond, and so forth). Following are the expected inflation rates for the next five 2 years. Year Inflation Rate 3.0% 5.0% 4.0% 8.0% 3.09% 20 20 a. Complete the following t e Maturity Risk Premium Estimated Interest Year Average Expected Inflation Inflation Rate 3.0% / 500 / 4.096 / 9096 10 2.0 | 2.0 20 b. Plot the yield curve for the interest rate rates you computed in in part a. Hint: Complete the following table from part a. Use excel to plot the yield curve. When done, copy/paste the chart in the space provided below. Estimated Interest Rate Year