s suppose you walk into the bank and see that a 1-year Treasury security carries a 2% rate of return and a 2 Treasury security carries a 4% rate of return, what rate of return would you expect to earn on a 1-year Treasury securit year from now, assuming the expectations theory is valid? 2.00% b, a. 4.00% c. 6.00% d. some other amount, please see my work in this space 9, Key Corporation's 10-year bonds yield 8.00%, and 10-year T-bonds yield 5.00% 1.00%, the default risk premium for Keys' bonds is DRP-2.00%, the liquidity premium on Keys' bonds is LP inflation The real interest rate 1.000 premium (IP) is 2.00%, what is the maturity risk premium (MRP) on a 10-year bonds? a. b. c. d. 0.00% 2.00% 4.00% some other amount, please see my work in this space. lf2-year T-bonds have a yield of 4.00%, 2-year corporate bonds yield 6.80 %, the maturity risk premium bonds is 0.80%, and corporate bonds have a l 80% default risk premium, what is the liquidity premium on the cor 10 a. b. c. d. 0.00% 0.20% 1.00% some other amount, please see my work in this space 11 If you recently bought shares of stock of a publicly traded company from another student in FIN 340 example of a. A money market transaction b. A primary market transaction c. A secondary market transaction d. A futures market transaction 12. Assume that interest rates on 20-year Treasury and publicly traded corporate bonds are as follow T-bond = 2.25% AAA-3.25% A BBB 3.75% 5.50% The differences in rates among these issues were caused primarily by a. Real interest rate differences. b. Inflation differences c. Default risk differences. d. Maturity risk differences