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please answe all of the because they are related and please show the steps allso.Thank you and i promise to rate you well 6-2 REAL
please answe all of the because they are related and please show the steps allso.Thank you and i promise to rate you well 6-2 REAL RISK-FREE RATE You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.8% Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premium Inflation premium - 3.25% Liquidity premium - 0.6% Maturity risk premium 1.85% Default risk premium = 2.19% On the basis of these data, what is the real risk-free rate of return? 63 EXPECTED INTEREST RATE The markeerates 2.29% Inflation is expected to be 2.5% this year and 425% during the next 2 years Assume that the maturity risk premium is zero What is the yield on 2.yeur Treasury securities? What is the yield on 3-year hasury securities? 64 DEFAULT RISK PREMIUM A Taury bond that matures in 10 years has a yield of 5.75% A 10 year corporate bond has a yield of 79% Assume that the liquidity premium on the corporate bond is 0.3. What is the default risk premium on the corporate bond? 6-5 MATURITY RISK PREMIUM The real risk-free rate is 2.5% and inflation is expected to be 2.79% for the next 2 years. A 2year Treasury security yields 5.59%. What is the maturity risk premium for the 2-year security
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