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(Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate

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(Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate for a number of different Treasury bonds with different maturity dates. The real risk-free interest rate that you have been told to use is 33%, and this tato is expected to continue on into the future without any change. Inflation is expected to be constant over the future at a rate of 2.5% Since these are bonds that are issued by the US Treasury, they do not have any detalt eink or any liquidity risk (that is, there is no liquidity risk premium). The maturity risk premium is dependent upon how many years the bond has to maturity The maturity risk premiums are shown in the popup window I Given this information, what should the nominal rate of interest on Treasury bonds maturing in 0-1 you, 1-2 years, 2-3 years, and 3-4 years be? The nominal rate of interest on Treasury bonds maturing in 0 1 year should be % (Round to two decimal places) The nominal rate of interest on Treasury bondn maturing in 1.2 years should be oond to two decimal places The nominal vote of interest on Tramoy bionds maturing in 2-3 years should be % (Round to two decimal place) The nominal rate of intereson Trosory bondo maturing in 3-4 years should be > (Round to two decimal places BOND MATURES IN: 0-1 year 1-2 years 2-3 years 3-4 years MATURITY-RISK PREMIUM: 0.04% 0.25% 0.55% 0.90% nos

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