please solve these question # 6.10.

ading (eBook) f Financial Management, Concie ? 6-10 INFLATION Due to a inflation rate in Year 2 and thereafter is expected to be constant at some level a Assume that the expectations recession, expected inflation this year is only 3 .25%. However, the bove 3.2590. theory holds and the real risk-free rate (r) is 2.5%. Ifthe ield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 1? Answer 6-11 DEFAULT RISK PREMIUM A company's 5-year bonds are yielding 7% per year. Treasury bonds with the same maturity are yielding 5.2% per year, and the real risk-free rate (r) is 2.75%. The average inflation premium is 20s%; and the maturity risk premium is estimated O Trpe hese to seasch