QUESTION 3 The real risk-free rate is 2.5 percent, and inflation is expected to be 4 percent next year and 7 percent for the following 3 years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities? a. 9.50% b. 8.75% O c. 2.50% O d. 13.50% e. 6.50% QUESTION 4 The real risk-free rate is 3 percent. Inflation is expected to be 3.5 percent this year, 4.5 percent next year, and 5.5 percent thereafter The maturity risk premium is estimated to be 0.05 (t-1)%, where t is the number of years to maturity. What is the yield on a 10 year Treasury note? a. 8.209 b. 0.50% OC 8.65% d. 6.95%