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preserves one's the interest Income ProVIDU DV Quantitative Problemi An analyst evaluating securities has obtained the following information. The real rate of interest is 2.7

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preserves one's the interest Income ProVIDU DV Quantitative Problemi An analyst evaluating securities has obtained the following information. The real rate of interest is 2.7 and is expected to remain constant for the next years. Inflation expected to be 2.2% next year, 3.2% the following year, 4.2% the third year, and 5.2% every year thereafter. The maturity risk premium is estimated to be 0.1*(-1), where number of years to maturity. The quidity premium on relevant 5-year securities is 0.5% and the default risk premium on relevant year securities is 1 a. What is the yield on a 1year Tbil? Round your answer to one decimal place b. What is the yield on a 5-year T.Bond? Round your answer to one decimal place. What is the yield on a 5-year corporate bond? Hound your answer to one decimal place

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