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Excel Online Structured Activity; Interest rate premiums A 5-year Treasury bond has a 4.35% yield. A 10-year Treasury bond yields 6.95%, and a 10-year corporate

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Excel Online Structured Activity; Interest rate premiums A 5-year Treasury bond has a 4.35% yield. A 10-year Treasury bond yields 6.95%, and a 10-year corporate bond yields 9.75%. The market expects that inflation will average 3% over the next 10 years (1P10=3%). 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.)A5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate band described. The data has been collected in the Microsoft Excel Online fle 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

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