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The Stetson Group's 10 year bonds yield 9.35% and the 10 year T-bonds yield 3.23%. The risk free rate, rf =2.3%, the default risk premium
The Stetson Group's 10 year bonds yield 9.35% and the 10 year T-bonds yield 3.23%. The risk free rate, rf =2.3%, the default risk premium for Stetson bonds is 1.32% versus zero for T-bonds, the liquidity premium on Steson bonds is 1.15%, and the maturity risk premium for all bonds is found with the form M. number of years to maturity. What is the inflation premium on the 10 year bonds
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