r. (3 plj HIHt: Draw a time-line to follow the money. Suppose the real risk-free rate is 3.25%, the average future inflation rate is 4.35% and a maturity risk premium of 0.07% to maturit bond premium of 0.50% and a default risk premium of 0.90% apply to A-rated corporate bond but not to T-bonds. How much higher would the rate of return be on a 10-year A-rated corporate bond than on a 5-year Treasury bond? (5 pt) s, i.e., MRP = 0.07%(t), where t is the years to maturity. Suppose also that a liquidity per year to maturity applies to both corporate and T 16. Name the 4 most fundamental differences between bonds and stocks. (8 pt)