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QUESTION 3 The real risk-free rate is 2.5 percent, and inflation is expected to be 4 percent next year and 7 percent for the following 3 years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities? O a 9.50 b. 8.759 OC 2.50% d. 13.50 Ge. 6.50 QUESTION 4 The real risk-free rate is 3 percent. Inflation is expected to be 3.5 percent this year, 4.5 percent next year, and 5.5 percent thereafter. The maturity risk premium is estimated to be 0.05 x (1 - 1)%, where t is the number of years to maturity. What is the yield on a 10-year Treasury note? a 8.209 6.0 50% OC 8.659. Od 6959 Oe 8.959