3. Calculating interest rates The real risk-free rate (r) is 2.8% and is expected to remain constant. Inflation is expected to be 6% per year for each of the noxt three years and 5% thercafter. The maturity risk premium (MRP) is determined from the formula: 0.1(t1)%, where t is the security's maturity. The liquidity premkim (LP) on of Pandar Corp.'s bonds is 0.55%. The following table shows the current relationship between bond ratings and default risk premiums (ORP): Pandar Corp. Issues 13-yeat, AA-rated bonds. What is the vield on one of these bonds? Disrogend cressiproduct terms; that is, if averaging is required, use the arithmetic averapo. 10.03% 5.35% 10.58% 9.38% Chapter 6 Assignment Pandar Corp, issues 13-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. 10.03% 5.35% 10.58% 9,38% Based on your understanding of the determinants of interest rates, if everything eise remains the same, which of the following will be true? An AAA-rated bond has less default risk than a BB-rated bond. The yield on U.5. Treasury securities always remains static