Suppose that you are considering the purchase of a $20-$year Treasury bond, a

$20-$year Microsoft Corporation corporate bond, and the common stock of

Microsoft. The current risk premiums are provided:

Maturity risk premium

Default risk premium

Real risk$-$free rate

Seniority risk premium

Inflation premium

Liquidity premium

Required:

Determine the required rate of return for all three securities based on the

information provided above.