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