Calculate the maturity risk premium and the default risk premium on a 10-year bond issued by the Adams Corporation today in the primary market, given the following information: Average expected inflation for the next 10 years is 3%; k* = 2% Interest rate (k) on a 10-year T-bond - 6.0% Interest rate (k) on a 10-year Adams bond = 12.0% MRP - 1.0%, DRP - 5.0% O MRP-2.0%, DRP - 20% MRP -20%, DRP 3.0% O MRP = 10%. DRP=6,0% When an economic downturn is expected, investors sell short-term treasuries, buy long-term treasuries and the yield curve becomes upsloping O buy short-term treasuries, sell long-term treasuries and the yield curve becomes downsloping o sell short-term treasuries, buy long-term treasuries and the yield curve becomes downsloping buy short-term treasuries, sell long-term treasuries and the yield curve becomes upsloping Calculate the maturity risk premium and the default risk premium on a 10-year bond issued by the Adams Corporation today in the primary market, given the following information: Average expected inflation for the next 10 years is 3%; k* = 2% Interest rate (k) on a 10-year T-bond - 6.0% Interest rate (k) on a 10-year Adams bond = 12.0% MRP - 1.0%, DRP - 5.0% O MRP-2.0%, DRP - 20% MRP -20%, DRP 3.0% O MRP = 10%. DRP=6,0% When an economic downturn is expected, investors sell short-term treasuries, buy long-term treasuries and the yield curve becomes upsloping O buy short-term treasuries, sell long-term treasuries and the yield curve becomes downsloping o sell short-term treasuries, buy long-term treasuries and the yield curve becomes downsloping buy short-term treasuries, sell long-term treasuries and the yield curve becomes upsloping