A. Using 5-year bond yields, calculate the expected rate of inflation in September 2016 and September 2017:

2017:

2016:

B.Calculate the probability of default on a corporate BBB bond in September 2016 and September 2017:

2017:

2016:

C. Assuming a 35% tax bracket, calculate the tax equivalent yield for a Municipal AAA bond in September 2017.