Question: 28. The current yield to maturity on 30 year Hauser Oil bonds is 6% and the current yield on T-bills is 0.1%. For all securities,

28. The current yield to maturity on 30 year Hauser Oil

28. The current yield to maturity on 30 year Hauser Oil bonds is 6% and the current yield on T-bills is 0.1%. For all securities, the inflation premium is 2%. Show all calculations. a) What is the real interest rate based on the Fisher equation? b) If the maturity risk premium for 30 -year bonds is 3%, what is the yield on a 30 -year treasury bond? c) Assuming negligible liquidity risk premium, what is the default risk premium on Hauser Oil bonds if there are no special covenants? d) If Hauser Oil has an environmental disaster, what will happen to the default risk premium on Hauser Oil bonds? Why

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