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real risk free rate is 2.5%, the inflation premium for 5 year bonds is 1.50%, the liquidity premium for snooq's bonds is 0.5% versus zero
real risk free rate is 2.5%, the inflation premium for 5 year bonds is 1.50%, the liquidity premium for snooq's bonds is 0.5% versus zero for T-bonds, and the maturity risk premium for all bonds is found iwth the formulat MRP = (t-1) X 0.1%, where t = number of years to maturity. The default risk premium on snooq's bonds is 1.3%. what is the snooq's 5 year bonds yield rate? 5 year t-bonds yield rate?
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