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Question 1 5 pts Assume that a 3-year Treasury security yields 5.00%. Also assume that the real risk-free rate (r) is! 0.75%, and inflation is
Question 1 5 pts Assume that a 3-year Treasury security yields 5.00%. Also assume that the real risk-free rate (r") is! 0.75%, and inflation is expected to be 2.25% annually for the next 3 years. In addition to inflation, the nominal interest rate also includes a maturity risk premium (MRP) that reflects interest rate risk! What is the maturity risk premium for the 3-year security? Round your answer to two decimal places. Your answer should be between 0.00 and 2.92, rounded to 2 decimal places, with no special characters. 5 pts Question 2 A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 6.80%. Assume that the liquidity premium on the corporate bond is 0.6%. What is the default risk nur answer to two decimal places
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