BOOK A 5-year Treasury bond has a 5.5% yield. A 10-year Treasury bond yields 6.6%, and a 10-year corporate bond yields 8.2%. The market expect that inflation will average 1.6% over the next 10 years (IP10 - 1.6%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk-free rate will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium aretero for Treasury securities: ORP - 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 one decimal place. Check My Work (1 remaining) o tonky Question 9 of 9 JUUNIL ASSIMment for Grading Question 9 of 9 Check My Work (1 remaining) eBook A 5-year Treasury bond has a 5.5% yield. A 10-year Treasury bond yields 6.6%, and a 10-year corporate bond yields 8.2%. The market expects that inflation will average 1.6% over the next 10 years (IP 10 = 1.6%). 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 one decimal place! Check My Work (1 remaining)