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Show calculations You are given the following interest rate data: 90-day Treasury Bills 3% 20-year Treasury Bonds 5% 20-year AT&T Corporate Bonds 10% Expected annual

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You are given the following interest rate data:

90-day Treasury Bills 3%

20-year Treasury Bonds 5%

20-year AT&T Corporate Bonds 10%

Expected annual inflation rate 2 %

(1) The real interest rate is _______%

(2) The maturity risk premium is _____%

(3) The default risk premium of AT&T corporate bond is ______%

(4) If the expected annual inflation rate increases to 3%, the 90-day T-bill interest rate should be _____%; and the interest rate of 20-year AT& corporate bond should be ______%.

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