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Complete the following table by calculating yields on a 2 - and 3 year Treasury bills, respectively. Yield 2 - year Treasury bill 3 -

Complete the following table by calculating yields on a 2- and 3year Treasury bills, respectively.
Yield
2-year Treasury bill
3-year Treasury bill
Unlike Treasury securities, corporate bonds have both a default risk premium and a liquidity risk premium. Suppose that the liquidity premium on 3-year bonds is LP=0.55%
, and the default risk premium on 3-year bonds is DRP=1.30%
.
The formula for calculating the yield on a corporate bond is
rcorp=r*+IP+DRP+LP+MRP
rcorp=r*+IP+LP+MRP
rcorp=IP+LP+MRP
rcorp=IP+DRP+LP+MRP
The yield on a 3year corporate bond is .

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