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3 Month Treasury bill rate is 2.75% 30 Year Treasury Bond Rate is 3.43% 30 Year Aaa-rated corporate bond is 5.71% Inflation Rate is

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3 Month Treasury bill rate is 2.75% 30 Year Treasury Bond Rate is 3.43% 30 Year Aaa-rated corporate bond is 5.71% Inflation Rate is 3.15% Using the information above please DEFINE and COMPUTE the following: What does each rate and premium measure. A) Real risk-free interest rate B) Default-risk premium C) Maturity-risk premium D) Liquidity-risk premium = .04 E) Nominal Interest Rate

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