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A 5-year Treasury bond has a 4.95% yield. A. 10 -year Treasury bond yields 6.75%, and a 10 -year corporate bond yields 9.9%. The market

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A 5-year Treasury bond has a 4.95% yield. A. 10 -year Treasury bond yields 6.75%, and a 10 -year corporate bond yields 9.9%. The market expects that inflation will average 2.25% over the next 10 years (IP 10=2.25% ). Assume that there is no maturity risk premium (MRP = 0 ) and that the annual real risk-free rate, r, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the llquidity premium are zero for Treasury securities: DRP =LP=0.) A5-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 Ontine file below. Open the spreadsheet and perform the required analysis to answer the question below

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