A 5-year Treasury bond has a 4.1% yield. A 10-year Treasury bond yields 6%, and a 10-year corporate bond yields 9.25%. The market expects that inflation will average 2.4% over the next 10 years (IP20 - 2.4%). Assume that there is no maturity risk premium (MRP - 0) and that the annual real risk- free rate, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP - LP -0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet What is the yield on this 5-year corporate bond? Round your answer to two decimal places. B C D E F G H 4.10% 6.00% 9.25% Interest rate premiums 2 3 5-year Treasury yield (T3) 4 10-year Treasury yield (10) 5 10-year Corporate yield (C10) 6 Inflation Premium over 10 years (IP 10) 7 Maturity Risk Premium (MRP) 8 DRP Treasury 9 LP Treasury 10 DRP cs+LPcs = DRP C10 11 12 Real risk-free rate, 13 14 Inflation premium over 5 years (IPs) 15 16 DRP 10 + LP 10 17 18 5-year Corporate yield (C) 19 20 2.40% 0.00% 0.00% 0.00% + LP C10 Formulas #N/A WNIA WNIA #NIA