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Using the following DATA: R*= 2.95% I1 = 5% I2 = 4% I3 = 3% I4 =2% MRP = .60% ( t - 1) (NOTE:
Using the following DATA: R*= 2.95% I1 = 5% I2 = 4% I3 = 3% I4 =2% MRP = .60% ( t - 1) (NOTE: This is a PERCENTAGE, not a DECIMAL MRP!) t = number of years to maturity DRP = 8.4% LP = 3.25% CALCULATE: 5 year TREASURY BOND RATE 8 year CORPORATE BOND RATE
Calculate-
TREASURY BOND ____________________
CORPORATE BOND ____________________
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