2. Problem 6.03 (Expected Interest Rate) The real risk-free rate is 3.25%. Inflation is expected to be 1.75% this year and 4.50% during the next 2 years, Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Do not round intermediate cakulations. Round your answer to two decimal places. What is the yieid on 3 yyear Treasury securities? Do not round intermediate cakculations. Round your answer to two decimal places. 2 The real risk-free rate, r, is 1.6%. Inflation is expected to average 1.5% a year for the next 4 years, after which time inflation is expected to average 4.7% a year. Assume that there is no maturity risk premium. An 8 -year corporate bond has a yield of 12.0%, which includes a liquidity premium of 0.2%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places. You read in The Wair Street dournal that 30 -day T-bills are currently yieiding 4.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: - Inflation premium =3.50% - Licuidity premium =1,2% - Maturity risk premium =2.30% - Default risk premium =2.45% On the basis of these data, what is the real risk-free rate of return? Round your answer to two decimal places. %