Question: Could you please answer both questions as they are part of the same problem? Thank you in advance! The real risk-free rate is 2.65%. Inflation

Could you please answer both questions as they are part of the same problem? Thank you in advance!
The real risk-free rate is 2.65%. Inflation is expected to be 3.65% this year, 4.45% next year, and 2.5% thereafter. The maturity risk premium is estimated to be 0.05 x (t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places. % A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,052.10, and currently sell a a price of $1,101.47. What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places. YTM: 6.66 % YTC: 6.56 % What return should investors expect to earn on these bonds? I. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. II. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. III. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. IV. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. -Select
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