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Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.15%, and a 10 -year

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Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.15\%, and a 10 -year corporate bond yields 8.2%. The market expects that inflation will average 2.25% over the next 10 years ( IP10=2.25% ). 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

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