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answer all parts Suppose the real risk-free rate of interest is r2=3% and it is expected to remain constant over time. Inflation is expected to

answer all parts
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Suppose the real risk-free rate of interest is r2=3% and it is expected to remain constant over time. Inflation is expected to be 1,40% per year for the next two years and 3.80% per year for the next three years. The maturity risk premlum is 0.1(t1)%, where t is number of years to maturity, a liquidity premium is 0.25%, and the default risk premium for a corporate bond is 1.90%. The average inflation during the first 3 years is What is the yield on a 3 -year Treasury bond? 7.55%5.20%5.40%3.20% What is the vield on a 3 -year B88-rated bond? 5.65%5.40%7.30%7.55% If the yield on a 5 -year Treasury bond is 6.24% and the yield on a 6-year Treasury bond is 6.70%, the expected inflation in 6 years is. (Hint: Do not round intermediate calculations.) Now it's time for you to practice what you've leamed. Suppose the real risk-free rate of interest is r=3% and it is expected to remain constant over time. Inflation is expected to be 1.40% per year for the next 3 years and 3.80% per year for the next 5 years. The maturity risk premium is 0.1(t1)%, where t is number of years to maturity, a liquidity premium is 0.25%, and the default risk premium for a corporate bond is 1.90%. Complete the following table by calculating yields on Treasury and corporate bonds of various maturity

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