Using the most recent issue of the Wall Street Journal, review the yields for the following securities:

Question 1: Using the most recent issue of the Wall Street Journal, review the yields for the following securities: Type Maturity Yiel d Treasury 10-year Corporate: high quality 10-year Corporate: medium quality 10-year Municipal (tax-exempt) 10-year A) If credit (default) risk is the only reason for the yield differentials, then what is the default risk premium on the corporate high-quality bonds? And on the medium quality bonds? Question 2: At the beginning of 2009, the Market Place was concerned with interest rate levels and the possibility of inflation. Given the following information, determine if you agree that the FED had anything to be concerned about. (See point value below.) Current US Treasury Rates at a Glance ==> " Rates for US Treasury Bonds, Bills and Notes. " as of 12/28/08