(Calculating thedefault-risk premium) Atpresent, 10-year Treasury bonds are yielding 3.6% while a10-year corporate bond is yielding 6.4%. If theliquidity-risk premium on the corporate bond is 0.8%, what is the corporatebond's default-riskpremium percentage? Note that a Treasuty security should have nodefault-risk premium andliquidity-risk premium.

(Calculating thematurity-risk premium) Atpresent, the realrisk-free rate of interest is 1.5%, while inflation is expected to be 1.4% for the next two years. If a2-year Treasury note yields 5.2%, what is thematurity-risk premium for this2-year Treasurynote?

(Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 4.3 percent and the expected inflation rate is 7.2 percent?

(Real interestrates: approximation method) You are considering investing money in Treasury bills and wondering what the realrisk-free rate of interest is.Currently, Treasury bills are yielding 8.0% and the future inflation rate is expected to be 4.8% per year. Ignoring the cross product between the real rate of interest and the inflationrate, what is the realrisk-free rate ofinterest?