19. Suppose the current nominal risk-free rate is 5.80%. You also have the following estimates of current interest rate premiums: Inflation premium = 3.25% Liquidity premium = 0.6% Maturity risk premium per year = 0.25% Default risk premium = 1.45%

Based on this information, what is the real risk-free rate of return?

Group of answer choices

0.25%

9.05%

2.55%

2.05%

22. As discussed in class, during March 2020, largely due to the economic uncertainty stemming from the spread of the COVID-19 virus, investors began moving towards safer assets. As a result corporate bond yield spreads ___________________________ .

Group of answer choices

Decreased since both treasury bond yields, and corporate bond yields decreased.

Increased since both treasury bond yields, and corporate bond yields increased.

Increased since treasury bond yields decreased, and corporate bond yields increased.

Decreased since treasury bond yields increased, and corporate bond yields decreased.