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Please help with a-c LATION AND INTEREST RATES The real risk-free rate of interest, r*, is 3%; and it is expected to remain constant over

image text in transcribedPlease help with a-c
LATION AND INTEREST RATES The real risk-free rate of interest, r*, is 3%; and it is expected to remain constant over time. Inflation is expected to be 2% per year for the next 3 years and 4% per year for the next 5 years. The maturity risk premium is equal to 0.1 times (t- 1)%, where t = the bond's maturity. The default risk premium for a BBB-rated bond is 1.3%. What is the average expected inflation rate over the next 4 years? What is the yield on a 4-year Treasury bond? What is the yield on a 4-year BBB-rated corporate bond with a liquidity premium of 0.5%

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