Inflation for the following four years is expected to be 3%, 1.3%, 1.0% and 5.8%. What is the inflation premium for a bond that matures in three years? answer in % without the symbol Your Answer: Answer Bonds have a maturity risk premium that can be modeled as the following: MRP = (t-1) 0.3% were t represents the years to maturity. What is the Maturity risk premium of a bond that matures in 17 years? answer in % without the symbol Your Answer: Answer The real risk free rate is 2%. The inflation premium for the next three years is 4.8%. The maturity risk premium for three year bonds is 2.4%. Liquidity premium is 3% and default risk premium is 4.5%. What is the nominal rate on a three year Treasury Bond? answer in % without the symbol Your