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An analyst evaluating secunties has obtained the following information. The real rate of interest is 2.8% and is expected to remain constant for the next

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An analyst evaluating secunties has obtained the following information. The real rate of interest is 2.8% and is expected to remain constant for the next 5 years. Infiation is expected to be 2.5% next year, 3.5% the following year, 4.5% the third yeac, and 5.5% every year thereafter. The maturity risk premium is estimated to be 0.1 ( t1)%, where t=n number of years to maturity. The liquidity premium on relevant 5 -year securities is 0.5% and the defoult risk premium on relevant 5 -year secunties is 1%. a. What is the yield on a 1 -year T-bili? Round your answer to one decimal place: b. What is the yield on a 5 -year T-bond? Round your answer to one decimal place. c. What is the vield on a 5-vear corporate bond? Round your answer to one decimal place

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