Suppose the real risk free rate : 4.205. Expected inflation - 1.10 Maturity riak premium, P = 0.10(E) where to the years to maturity. Calculate for the return of year Treasury security? a. 7.50 b. 7.80 c. 7.701 13. Pirms five year bonds. yield -6.201; Five year Treasury bonds yield - 4.401. Real risk-free rate, r. - 2.51. Expected inflation for five yar bonds, IP - 1.501. Liquidity premium for AA bond, LP - 0.51 and zero for Treasury bonds. Maturity riak premium for all bonds, both AM and Treasury bond, MRP = (t - 1) * 0.11, where t = number of years to maturity. Calculate for the default riak premium (ERP) on AAA banda? (hint + IP + MRP - DRPP IP MRP - DRP LP) a. 1.190 b. 1.01 c. 1.416 Pirm 's five year bonds yield - 74 and a five year Treasury bonds yield - 41. The real risk free rate, r = 2.54 inflation premium for five year bonds, IP - 1.500; the default risk premium for u s bonda DRP - 21 and zero for Treasury bonds; maturity risk premium for all bonds, MRP = (t - 1) x 0.1t, where t - number of years to maturity. Calculate for liquidity premium (LP) on MMA bonda? a. 1.501 b. 1.300 c. 1.001 15. Firm AM'S 5-year bonde yield - 6.356. Five year Treasury bonds yield- 4.751. Real riak free rate r* - 3.604; Default riak premium for ANA'S bond, DRP - 1.001 and zero for Treasury bonds, Liquidity premium on M's bonds, LP - 0.901, and zero for Treasury bonds; Maturity risk premium, MRP = (t - 1) * 0.16, where t = number of years to maturity. Calculate for the inflation premium (IP). a. 0.696 b. 0.751 c. 0.816 16. Pirm MMA'five year bonde yield = 8and five year Treasury bonds yield 56. The real risk free rate, r* = 2; default risk premium for AAB bonds DRP - 0.501; Liquidity premium on AAA bonds LP - 2t and zero on Treasury bondo, inflation premium (IP) - 1.51. Calculate for maturity risk premium