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Hi, can you please answer these questions it will be dearly appreciated :) Thanks!! A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury

Hi, can you please answer these questions it will be dearly appreciated :) Thanks!!

A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.85%, and a 10-year corporate bond yields 8.15%. The market expects that inflation will average 3.3% over the next 10 years (IP10 = 3.3%). 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. What is the yield on this 5-year corporate bond?

Due to a recession, expected inflation this year is only 2.25%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2.25%. Assume that the expectations theory holds and the real risk-free rate (r*) is 2%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 2%, what inflation rate is expected after Year 1? Round your answer to two decimal places.

The real risk-free rate, r*, is 2.45%. Inflation is expected to average 3% a year for the next 4 years, after which time inflation is expected to average 4.75% a year. Assume that there is no maturity risk premium. An 11-year corporate bond has a yield of 9.75%, which includes a liquidity premium of 0.95%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places.

A 5-year Treasury bond has a 4.85% yield. A 10-year Treasury bond yields 6.85%, and a 10-year corporate bond yields 8.15%. The market expects that inflation will average 3.3% over the next 10 years (IP10 = 3.3%). 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. What is the yield on this 5-year corporate bond? Round your answer to two decimal places.

An investor in Treasury securities expects inflation to be 2.1% in Year 1, 3.35% in Year 2, and 4.25% each year thereafter. Assume that the real risk-free rate is 2.3%, and that this rate will remain constant. Three-year Treasury securities yield 6.85%, while 5-year Treasury securities yield 7.90%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5 - MRP3? Do not round intermediate calculations. Round your answer to two decimal places.

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