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B eBook A 5 year Treasury bond has a 4.15% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate bond yields 8%. The

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B eBook A 5 year Treasury bond has a 4.15% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate bond yields 8%. The market expects that inflation will average 3.6% over the next 10 years (IP20 - 3.6%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk-free rate, r", will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP - LP -0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. What is the yield on this 5-year corporate bond? Round your answer to two decimal places

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