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please i need your help with both The real risk-free rate is 1.55%. Inflation is expected to be 1.80% in the coming year (Year 1),0.25%
please i need your help with both
The real risk-free rate is 1.55%. Inflation is expected to be 1.80% in the coming year (Year 1),0.25% in the following year (Year 2), and 0.33\% in the year after that (Year 3). The maturity risk premium for 2-year bonds is 2.07% and the maturity risk premium for 3-year bonds is 2.14\%. What is the yield on a 3-year Treasury security? Question 4 A Treasury bond that matures in 15 years has a yield of 3.95\%. A typical 15-year corporate bond has a yleld of 6.88%. If the liquidity premium on the corporate bond is 0.56%. What is the default risk premium on the corporate bond? 1.62% (B) 2.24% (C) 2.37% (D) 2.65% 3.39% Step by Step Solution
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