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I need the solution to solve this problem. preferably excel or HP 10bii financial calculator. xam Question 12 Not yet answered Marked out of 2.00
I need the solution to solve this problem. preferably excel or HP 10bii financial calculator.
xam Question 12 Not yet answered Marked out of 2.00 The expected annual inflation rates for the coming 5 years are listed in the following table: Year Expected annual inflation rate 1 12% b. 2 3 3 14 4 15 5 The real risk-free rate for a five-year debt security is 2%. The current yield for a five-year Treasury note is 10%. Assume that the liquidity premium for the security is 0%, what is the maturity risk premium of the security? Select one: O a. 4.8% Ob. 3.1% O c.4.2% O d. 0% O e. 3.5% Question 13 Not yet answered Marked out of 2.00 If you receive a constant payment of $300 at the end of every year forever, what is the present value of this cash flow stream if the interest rate is 15%? Select one: O a $2,000 O b. $1,000 O c. $1,750 O d. $2,250 O e. $1,500
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