14-15

Manny-Parny Co is a large and well-fun company. The following is information on the company's interest rate outlook. - The pure rate of interest is 4.1\%. - Inflation is expected to increase in the future from its current low level of 2\%. Predicted annual inflation rates are shown in the table. - The default risk premium wall be 0.1% for one-year debt, but wil increase by 0.1 \%. for each additional year of teem to a maximum of 1.009. - The liquidity premium is zero for one- and two-year debt, 0.5% for three-, four-, and five-year terms, and 1% - The maturity risk premium is zero for a one-year term and inereases by 0.2% for each additional year of term to a maximum of 2 ef Use the interest rate model to estimate market rates on the firm's debt securities of the following terms: 1 to 5 years, 10 years, and 20 years. Round your answers to one decimal place and include % signs. The race for a 1 year term security is The rate for a 2 year term security is The rate for a 3 year term security is The rate for a 4 year term security is. The rate for a 5 year term security is The rate for a 10 year term security is The rate for a 20 year term security is QUESTION 15 next 12 months. The pure interest rate is currently about 3 V. Fo. Round your answer to one decimal place. Include the % sign