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A 5 year Treasury bond has a 3.65% yield. A 10 year Treasury bond yields 6.65%, and a 10 year corporate bond yields 8.3%. The

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A 5 year Treasury bond has a 3.65% yield. A 10 year Treasury bond yields 6.65%, and a 10 year corporate bond yields 8.3%. The market expects that inflation will average 24% over the next 10 years (Po = 24). Assume that there is no maturity risk premium (MRP) and that the annual realisk tree rate will remain constant over the next 10 years (Hint: Remember that the fault risk premium and the quoty premium are ter for Treasury securities: R0.) A 5-year corporate bond has the same des premium and liquidity premium as the 10 year corporate and described. What is the field on this 5-year corporate bond Round your answer to two decimo

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