Question: A five year treasury bond has a 4 . 9 % yield a 1 0 year treasury bond yield 6 . 8 % in a

A five year treasury bond has a 4.9% yield a 10 year treasury bond yield 6.8% in a 10 year corporate bond yield 8.8% the market expects that inflation will average 2.4% over the next 10 years assume that there is no maturity risk premium and that the annual real risk free rate remain constant over the next 10 years a five-year corporate bond has the same default risk premium and liquidity premium as the 10 year corporate bond described what is the yield on this five-year corporate bond

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