Excel Online Structured Activity: Interest rate premium A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.25%, and a 10-year corporate bond yields 8.8%. The market expects that Inflation wil average 2.55% over the next 10 years (IP30 - 2.55%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk free rate, r", will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP = LP = 0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet What is the yield on this 5-year corporate bond? Round your answer to two decimal places Check My Work Reset Problem x Excel template File Home Insert Data Review View H elp Tell me what you want to do X Cut Percentage Paste LLCopy Format Painter Clipboard Arial 10 AA = BI U DO E $ - % - Conditional Formatting Styles Font Alignment Number C D E F G H I 1 Interest rate premiums 4.85% 6.25% 3 4 5 6 7 8 8.80% 5-year Treasury yield (TJ 10 year Treasury yield (To) 10-year Corporate yield (Co) Inflation Premium over 10 years (IP Maturity Risk Premium (MRP) DRP Treasury LP Treasury DRPCS+LPcs - DRPC10 + LPC10 ) 2.55% 0.00% 0.00% 0.00% 10 12 Real risk-free rate, Formulas WNIA 14 Inflation premium over 5 years (IP) WNIA DRP +LPG WNIA 5-year Corporate yield (C) INA Sheet1