Question: Could you please help me to answer these questions: Question 5 (1 point) An analyst is evaluating securities in a developing nation where the inflation

Could you please help me to answer these questions: point) An analyst is evaluating securities in a developing nation where the

Question 5 (1 point) An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 9% and inflation is expected to be 9.90% each of the next 10 years, what is the yield on a 10-year security with no maturity, default, or liquidity risk? O 0.900% 18.900% 19.791% 11.700% Previous Page Next Page Page 5 of 15 Question 6 (1 point) One-year Treasury securities yield 5.00%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 10.00%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? 7.47% 15.00% 8.47% 6.47% Page 6 of 15 Previous Page Next Page

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