FC 20-0- Pre 125 South 2. Sun DP-1)... weiter What is the name S.KOING TO ve way we w Meneer 2022 www ver Warner 2047 Kb he Els that more sends who pri of the registoww Podhet are workers hawa wad. heyrt Www W with 20 www. Whey PGYM? YIW Www That Yon Care Capital Game 42047 | Wa I HAI H + Hi v ... wwu A+ Hin nay v tu | | | | | | watery w 100 What are 1047 Swah..parue 103 di VIM What Is your husband with MY RAINY Wow birou ar ht w Year YIC Sheet! 5 Squire Inc.'s 5-year bonds yield 6.75%, and 5-year T-bonds yield 4.80%. The real risk-free rate 6 is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Squire's bonds is DRP = 1.20% versus zero for T-bonds, and the maturity risk premium for all 8 bonds is found with the formula MRP = (t - 1)*0.1%, where t = number of years to maturity. 9 What is the maturity risk premium (MRP) and the liquidity premium (LP) on Squire's bonds? ho MRP = LP = 11 12 13 14 15 16 17 18 19 20 Problem 2 (75 points): 21 N 22 Congratulations, you have been hired as an analyst at the Procter and Gamble Co. 23 (PG). It is November 1, 2020. PG just made a coupon payment (semi-annual) on its 24 "8% 2047" bonds that mature on November 1, 2047. The bonds currently sell for 106 25 with a par value of 100 26 27 a. What is the yield to maturity on the PG 2047 bond? 28 29 YTM=