5. Le Corporation's 5-year bonds yield 6 SO%, and 5-year T-bonds yield 4.80%. The real risk-free rate is -2.75%, the inflation premium for 5-year bonds is lPal 65%, the default risk premium for Le's versus zero for T-bonds, and the maturity risk premiun for all bonds is fourad with the formula MRP(t-1 premium (LP) on Le's b -110.1%, where t =number of years to maturity, what is the liquidity onds a. 0.49% b. 0.55% . 0.61% d. 0.50% e. 0.75% 6. Suppose the interest rate on a 1-year T-bond is 5.0% and that on a 2-year T-bond is 6.0% Assuming the pure expectations theory is correct, what is the market's forecast for 1-year rates 1 year from now? a. 7.36% b. 7.01% c. 8.16% d. 8.59% e. 9.04% 7, Bellock's Corporation's bonds have a 10-year maturity, a 6.00% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.00%, based on semiannual compounding. What is the bond's price? a.1,163.51 b.1,090.3 c.1,118.31 d.1,146.27 e.1,174.93 8. A 15-year bond with a face value of $1,000 currently sells for $1,100. Which of the following statements is CORRECT? a. The bond's coupon rate exceeds its current yield. b. The bond's current yield exceeds its yield to maturity. c. The bond's yield to maturity or discount rate is less than its coupon rate. d. The bond's current yield is equal to its coupon rate. e. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $1,100