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What is the yield on this 5-year corporate bond? A 5-year Treasury bond has a 4.45% yield. A 10-yeat Treasury hond yields 6.55%, and a

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What is the yield on this 5-year corporate bond?

A 5-year Treasury bond has a 4.45% yield. A 10-yeat Treasury hond yields 6.55%, and a 10-year corporate bond yields 9.1%. The market expects that inflation wilaverage 2.7% over the next 10 years (IP:u= 2.796). Assure that there is no maturity nsk premium (MRP - 0) and that the annual real risk-free rate, 1", will remain constant over the next 10 years. (Hint: Remember that the default nsk premium and the liquidity premium are zero for Treasury securities: DRP - LP = 0.) A 5-year corporate bond has the same default risk premium and Iquidity premium as the 10-year corporate bond described. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below

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