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A nominal risk-free rate is currently 1.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%,

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A nominal risk-free rate is currently 1.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%, Liquidity Risk Premium 1%, Maturity Risk Premium 2%, and Default Risk Premium 1%. Based on these data, what is the rate of short-term U.S. Treasuries? O 3.5% 4.5% 5.5% O 1.5% Question 5 A real risk-free rate is currently 3.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%, Liquidity Risk Premium 1.5%, Maturity Risk Premium 3%, and Default Risk Premium 1.5%. Based on these data, what are the rates of long-term corporate bonds? 11.5% 9.5% 7.5% 5 pts 8.5% Assume a company has a $1.8 million senior secured loan with a 3.5% interest rate and a $550,000 senior unsecured loan with a 6% rate. If the company's marginal tax rate is 15%, what is the after-tax cost of debt? O 3.25% O 3.91% O 3.47% 4.09%

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