Determinants of Interest Rates The current yield to maturity on 30-year Hauser Green Energy bonds is 5.5% and the current yield on T-bills is 0.5%. For all securities, the inflation premium is 4%. Show all calculations in Excel.

a) What is the real interest rate based on the Fisher equation?

b) If the maturity risk premium for 30-year bonds is 3%, what is the yield on a 30-year treasury bond?

c) Assuming negligible liquidity risk premium, what is the default risk premium on Hauser Green Energy bonds if there are no special covenants?