Question: B12 fx B D E TI A Interest rate premiums 1 2 Nm 4.45% 6.85% 9.40% 3.15% 0.00% 0.00% 0.00% Formulas #N/A 3 5-year Treasury


B12 fx B D E TI A Interest rate premiums 1 2 Nm 4.45% 6.85% 9.40% 3.15% 0.00% 0.00% 0.00% Formulas #N/A 3 5-year Treasury yield (T5) 4 10-year Treasury yield (T 10) 5 10-year Corporate yield (C10) 6 Inflation Premium over 10 years (IP10) 7 Maturity Risk Premium (MRP) 8 DRP Treasury 9 LP Treasury 10 DRP c5 + LPc5 = DRPC10 + LPC10 11 12 Real risk-free rate, r* 13 14 Inflation premium over 5 years (IP5) 15 16 DRP 10 + LP 10 17 18 5-year Corporate yield (C5) 19 20 21 22 23 24 25 26 #N/A #N/A #N/A
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