Ch5-IntegrativeProblem (1) (Compatibility Mode] -Word Review View ? Tell me what you want to d .iat . AT I AaBbCol AaBbCilAaBbC. AaBbC AaBbCC AaBbCcDdE Aa : . 2. E I . 1 Heading 1 1 Heading 2 1 Heading 3 1 Heading 4 1 Heading 5 1 Heading 6 1 H Paragraph treasury bill rate. Nominal risk-free rate is real risk-free rate plus inflation rate Styles e. Define the terms inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and matur risk premium (MRP). Which of these premiums is included when determining the interest rate on (1) short-term U.S. Treasury securities, (2) long-term U.S. Treasury securities, (3) short-term corporate securities, and (4) long-term corporate securities? Explain how the premiums would vary over time an among the different securities. What is the term structure of interest rates? What is a yield curve? At any given time, how would the yield curve facing a given company such as IBM or Microsoft compare with the yield curve for U S Treasury securities? Draw a graph toillestrate your answer Several theories have been advanced to explain the shape of the yield curve. The three major ones ar f. g