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Excel Online Structured Activity: Interest rate premiums A 5-year Treasury band has a 4.9% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate

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Excel Online Structured Activity: Interest rate premiums A 5-year Treasury band has a 4.9% yield. A 10-year Treasury bond yields 6.1%, and a 10-year corporate bond ylelds 9.65%. The market expects that inflation will average 2.85% over the next 10 years (IP 10 - 2.85%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk-free rate, 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. X Open spreadsheet What is the yield on this 5-year corporate bond? Round your answer to two decimal places. %

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