Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

6-Which is riskier, a 1-year T-Bill, a 10 year T-Note, a 20 year T-Bond, a 30 year T-Bond?

A)A 30-year T-Bond

B)A 10 year T-Note

C)A 20 year T-Bond

D)A 1 year T-Bill

7-The real interest rate is 0.9%, inflation is expected to be 1.0% for this year and the next n=3 years. The maturity risk premium is given by MRP = 0.05*(n-1)%. What is the rate on a n=3-Treasury?

8-A 5-year T-note has a yield (rate of return) of 1.61%. If the real interest rate is -0.14% and average inflation over the 5 years is expected to be 0.77%, what is the maturity risk premium (MRP in %) associated with the 5-year T-note?

9-A 5-year T-note has a yield (rate of return) of 4%, the real interest rate is 1% and average inflation over the 5 years is expected to be 2%. If a AAA corporate bond of the same maturity has a yield of 7%, what is the corporate bond's maturity risk premium?

A)4%

B)1%

C)5.6%

D)0%

10-A 5-year T-note has a yield (rate of return) of 4%. If the real interest rate is 1% and average inflation over the 5 years is expected to be 2%, what is the maturity risk premium associated with the 5-year T-note?

A)0%

B)1%

C)3%

D)2.6%