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Check Mfy Work A company's 5 -year bonds are yielding 7% per year. Treasury bonds with the same maturity are yelding 5.6% per year, and

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Check Mfy Work A company's 5 -year bonds are yielding 7% per year. Treasury bonds with the same maturity are yelding 5.6% per year, and the real risk-free rate fr*) is 2,65%. The average infiation premium is 2.55%, and the maturity risk premium is estimated to be 0.1(t1)%, where t= number of years to maturity. If the liquidity oremium is 1.156, what is the defaut risk premium on the corporate bonds? Round your answer to two decimal places. Quantitative Problem 1: You plan to deposit $2,300 per year for 6 years into a money market accaunt with an annual retum of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 5 b. Assume that your deposits will begin today. What amount will be in your account after 6 yeors? Do not round intermediate calculations, Round your answer to the nearest cent. 5 Quantitative Problem 2: You and your wife are making plans for retirement, You plan on living 25 years after you retire and would like to have $95,000 annualiy on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 15% annualy. a. What amount do you need in your retirement account the day you rotire? Do not round intermed ate calculations. Round your answer to the nearest cent. 5 b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your rebrement aceount the day you natire? Do not round intermediate calculations: Round your answer to the nearest cent. s

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