Answer the questions 64-69 with reference to the following data.

Treasury Bills, 90 days 4.20%

Commercial Paper, 90 days 4.84%

Treasury Bill, 1 year 4.67%

Treasury Note, 2 year 5.25%

Corporate Bond AA, 20 year 8.23%

Municipal Bond AA, 20 year 6.42%

Expected Annual Inflation Rate 3.00%

64.) With reference to the data above, the default risk premium on the 90-day commercial paper above is

65.) With reference to the above data, what is the expected real rate of return on the 90-day commercial

paper?

66.) With reference to the data above, the implied one-year forward rate (expected one-year rate one year

from now) on Treasuries is

67.) With reference to the above data, at what marginal tax rate would an investor be indifferent between

owning the corporate bond and the municipal bond?

68.) With reference to the above data, what is the approximate expected pre-tax real rate of return on the

one-year Treasury bill?

69.) With reference to the data above, what is the expected after-tax real rate of return on the one-year

Treasury Bill for an investor in the 33 percent marginal tax bracket?