Use the following data to answer questions 7 9

r* = 5%

IP (1 year bonds) = 3.25%

IP (3 year bonds) = 3.60%

IP (5 year bonds) = 4.15%

DRP (AAA corporate bonds) = 0.35%

DRP (AA+ corporate bonds) = 0.40%

LP (AAA corporate bonds) = 0.17%

LP (AA+ corporate bonds) = 0.22%

MRP = 0.1% x (t-1) where t is the number of years to maturity

7. Calculate the interest rate for a 3-year AA+ corporate bond.

8. Calculate the interest rate for a 5-year AAA corporate bond.

9. Calculate the interest rate for a 5-year Treasury security