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Quantitative Problem: An analyst evaluating securities has obtained the following information. The real rate of interest is 2.9% and is expected to remain constant for

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Quantitative Problem: An analyst evaluating securities has obtained the following information. The real rate of interest is 2.9% and is expected to remain constant for the next 5 years. Inflation is expected to be 2.8% next year, 3.8% the following year 48% the third year, and 5.8% every year thereafter. The maturity risk premium is estimated to be 0.1 x (t-13%, where t number of years to maturity. The liquidity premium on relevant 5-year securities is 0.5% and the default risk premium on relevant 5-year securities is 1%. year T-b7 Round your answer to one decimal place What is the yield on 5.7 % B. What is the yield on a 5-year T-bond? Round your answer to one decimal place 3 e. What is the vieid on a 5-year corporate bond? Round your answer to one decimal place

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