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Given the following data, find the expected rate of inflation during the next year. r = real risk-free rate = 3.80%. Maturity risk premium on

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Given the following data, find the expected rate of inflation during the next year. r = real risk-free rate = 3.80%. Maturity risk premium on 10-year T-bonds = 2%. It is zero on 1-year bonds, and a linear relationship exists. Default risk premium on 10-year, A-rated bonds = 1.5%. Liquidity premium = 0%. Going interest rate on 1-year T-bonds = 5.30%. 1.60% 01.70% 1.90% 1.80% 1.50% Question 10 1 pts Drongo Corporation's 4-year bonds currently yield 2.8 percent and have an inflation premium of 1.1%. The real risk-free rate of interest, r', is 1.2 percent and is assumed to be constant. The maturity risk premium (MRP) is estimated to be 0.1%(t-1), wheret is equal to the time to maturity. The default risk and liquidity premiums for this company's bonds total 0.2 percent rate is expected to be 3.2 percent for years 5 and 6, what is the yield on a 6-year bond for Drongo Corporation? 3.50% 3.70% 3.80% 3.60% 3.90%

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