Problem 6.17 (Interest Rate Premiums) Question 9 of 16 Check My Work (1 remaining) eBook A 5-year Treasury bond has a 4.9% yield. A 10-year Treasury bond yields 6.25%, and a 10- year corporate bond yields 8.75%. The market expects that inflation will average 2.4% over the next 10 years (IP10 - 2.4%). Assume that there is no maturity risk premium (MRP-0) and that the annual real risk-free rate, rt, will remain constant over the next 10 years. (Hinta Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP = LP -0.) A S-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. What is the yield on this 5-year corporate bond? Round your answer to two decimal places. Check My Work (1 remaining) 0-leon Key Problem 6.17 (Interest Rate Premiums) Question 9 of 16 Submit Assignment for Gradins e CH D