managerial finance ii

Project Description:

real risk-free rate 6.2 you read in the wall street journal that 30-day t-bills are currently yielding 5.5%. your brother-in-law, a broker at safe and sound securities, has given you the following estimates of current interest rate premiums:
inflation premium=3.25%
liquidity premium=0.6%
maturity risk premium=1.8%
default risk premium=2.15%
on the basic of these data, what is the real risk-free rate return?
expected interest rate 6-3.the real risk-free rate is 3%. inflation is expected to be2% this year and 4% during the next 2 years. assume that the maturity risk premium is zero. what is the yield on 2-year treasury securities? what is the yield on 3-year treasury securities?
default risk premium 6-4.a treasury bond that matures in 10 years has a yield of 6%. a 10-year corporate bond is 0.5%. what is the default risk premium on the corporate bond?
maturity risk premium 6-5.the real risk-free rate is 3% and inflation is expected to be 3% for the next 2 years. a 2-year treasury security yields 6.2%. what is the maturity risk premium for the 2-year security?
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