Please see below:

3 Month Treasury bill rate is 3.96%

30 Year Treasury Bond Rate is 5.75%

30 Year Aaa-rated corporate bond is 7.71%

Inflation Rate is 2.15%

Using the information above please DEFINE and COMPUTE the following: What does each rate and premium measure.

A) Real risk-free interest rate

B) Default-risk premium

C) Maturity-risk premium

D) Liquidity-risk premium = .04

E) Nominal Interest Rate