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What is the yield for each of the two investments given the following information? (the 12 year treasury, and the 7 year corporate bond) Real

What is the yield for each of the two investments given the following information? (the 12 year treasury, and the 7 year corporate bond)

Real risk-free rate: 3%...

Expected Inflation 2% (for the next 2 years)... Expected inflation 3% (for the following 4 years)... Expected inflation 4% (for all time after the 6 year period)...

Maturity risk premium: 0.03%...

Liquidity premium: 0.2%...

AA rated bond Default risk premium + Liquidity premium: 0.48% (for corporate bonds)

a) Find the yield for the 12-year Treasury and calculate it using the xcel formula

b) Find the yield for the 7-year corporate AA rated bond and calculate it using the xcel formula

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