Check My Work (2 remaining) eBook The real risk-free rate is 2.00%. Inflation is expected to be 2.00% this year and 4.25% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. 4.13 96 What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. 4.83 % Hide Feedback Incorrect eBook One-year Treasury securities yield 2.45%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 2.7%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places. 0.02 % Hide Feedback Incorrect eBook Interest rates on 4-year Treasury securities are currently 5.2%, while 6-year Treasury securities yield 7.05%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round Intermediate calculations. Round your answer to two decimal places 96 eBook The real risk-free rate is 2.95%. Inflation is expected to be 3.95% this year, 4.85% next year, and 2.2% thereafter. The maturity risk premium is estimated to be 0.05 x (t-1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places. 96 eBook Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. a. What is the yield to maturity at a current market price of 1. $8347 Round your answer to two decimal places. % 2. $1,0937 Round your answer to two decimal places. b. Would you pay $834 for each bond if you thought that a "fair" market interest rate for such bonds was 14%-that is, if ra = 14%? 1. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. II. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. IV. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. V. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return V