Problem 2-11 (similar to) Question Help (Interest rate determination) You've just taken a job at an investment banking firm and been given the job of calculating the appropriate nominal interest rate for a number of different Treasury bonds with different maturity dates. The real risk-free interest rate that you have been told to use is 2.7%, and this rate is expected to continue on into the future without any change. Inflation is expected to be constant over the future at a rate of 2.6%. Since these are bonds that are issued by the U.S. Treasury, they do not have any default risk or any liquidity risk (that is, there is no liquidity-risk premium). The maturity-risk premium is dependent upon how many years the bond has to maturity. The maturity-risk premiums are shown in the popup window. Given this information, what should the nominal rate of interest on Treasury bonds maturing in 0-1 year, 1-2 years, 2-3 years, and 3-4 years be? %. (Round to two decimal The nominal rate of interest on Treasury bonds maturing in 0-1 year should be places) Enter your answer in the answer box and then click Check Answer x bond he real risk-free interest rate that you have been told to use is 2.7%, and this rate is expected to cont he future without any change Inflation is expected to be constant over the future at a rate of 26%. Si isk (th i Data Table n, wha 4 years BOND MATURES IN: MATURITY-RISK PREMIUM: 0-1 year 0.07% cimal 1-2 years 0.35% 2-3 years 0.60% 3-4 years 0.95% Click on the icon located on the top-right comer of the dete table in order to copy its contents into a spreadsheet omi Print Done