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A Treasury bond that matures in 10 years has a yield of 5.25%. A 10-year corporate bond has a yield of 8.5%. Assume that the

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A Treasury bond that matures in 10 years has a yield of 5.25%. A 10-year corporate bond has a yield of 8.5%. Assume that the liquidity premium on the corporate bond is 0.55%. What is the default risk premium on the corporate bond? ___% The real risk-free rate is 2.75%. and inflation is expected to be 3.25% for the next 2 years. A 2- year Treasury security yields 10%. What is the maturity risk premium for the 2-year security? ___% One-year Treasury securities yield 2.45%. The market anticipates that 1 year from now. 1-year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. Do not round your intermediate calculations. ___% A company's 5-year bonds are yielding 9.65% per year. Treasury bonds with the same maturity are yielding 5.9% per year, and the real risk-free rate (r*) is 2.2%. The average inflation premium is 3.3%. and the maturity risk premium is estimated to be 0.1 x (t - 1)%. where t = number of years to maturity. If the liquidity premium is 0.65%, what is the default risk premium on the corporate bonds? ___%

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