The real risk-free rate is 0.25%. Inflation is expected to average 1.0% a year for the next 2 years, after which time inflation is expected to average 2.00% a year. Assume that there is no maturity risk premium. A 9-year corporate bond has a yield of 9.0%, which includes a liquidity premium of 0.50%. What is its default risk premium? 0 6.250% 0 7.250% 6.972% 06.472% Assume that the real risk-free rate is 0.5% and that the maturity risk premium is zero. A 1-year Treasury bond yield is 13% and a 2-year Treasury bond yields 15%. a) What is the 1-year interest rate that is expected for Year 2? b) What inflation rate is expected during Year 2? a) 17.54%; b) 17.54% a) 16.54%; b) 17.04% a) 17.04%; b) 16.04% a) 17.04%; b) 16.54% a) 18.04%; b) 16.54%