Question $24$

$2$ pts

Suppose, the real risk$-$free rate of interest is $2\%.$ If the inflation is expected to be $1\%$ for the next $8$ years and the $8-$year Treasury note yields $4\mathrm{.}6\%$ then, what is the maturity$-$risk premium for this $8-$year Treasury note?

Question $25$

$2$ pts

Suppose the $15-$year Treasury bond rate currently gives $4\mathrm{.}2\%.$ If the inflation premium is $1\mathrm{.}6\%,$ and the maturity$-$risk premium on $15$ year Treasury bonds is $0\mathrm{.}7\%$ then, assuming that there is no liquidity$-$risk premium on $T$ bonds, what is the real risk$-$free interest rate? $($State your answer in one decimal point$)$

Question $26$

$2$ pts

Suppose the $20-$year Treasury bond rate currently gives $3\mathrm{.}6\%.$ If the inflation premium is $1\mathrm{.}4\%,$ and the maturity$-$risk premium on $20$ year Treasury bonds is $0\mathrm{.}4\%$ then, assuming that there is no liquidity$-$risk premium on $T$ bonds, what is the real risk$-$free interest rate? $($State your answer in one decimal point$)$

Question $27$

$2$ pts

Suppose Google's $30-$year bond currently yields $7\mathrm{.}8\%.$ If the current inflation premium is $1\mathrm{.}9\%,$ the maturity$-$risk premium is $1\mathrm{.}9\%,$ and the liquidity$-$risk premium is $0\mathrm{.}5\%$ then, what is the real risk$-$free interest rate? $($State your answer in one decimal point$)$