5. Which loan will you pay more interest on? Why does that loan accrue more interest? - 10% interest, 5 years, compounded monthly - 10% interest, 5 years, compounded daily 6. Calculate the rate of return on the following bonds using the information provided. The real risk-free rate is currently 3.5%. The default risk premium on corporate bonds is 1.7%. Inflation is projected to be 2% this year, 1.5% next year, and 3% for the next 8 years. A maturity premium of 0.25% per year applies. a. 1-year treasury bond b. 5-year treasury bond c. 5-year corporate bond d. difference in rate on 5 year corporate and 10 year treasury bonds