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Suppose the real risk - free rate of interest is r * = 3 % and it is expected to remain constant over time. Inflation

Suppose the real risk-free rate of interest is r*=3% and it is expected to remain constant over time. Inflation is expected to be 1.80% per year for the next 3 years and 4.00% per year for the next 5 years. The maturity risk premium is 0.1\times (t1)%, where t is number of years to maturity, a liquidity premium is 0.35%, and the default risk premium for a corporate bond is 1.80%.
Complete the following table by calculating yields on Treasury and corporate bonds of various maturity.
The yield on a 4-year Treasury bond =
The yield on a 4-year corporate bond =
The yield on a 8-year Treasury bond =
The yield on a 8-year corporate bond =
Expected inflation in 9 years, if the yield on a 9-year Treasury bond is 7.23%=

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