Data for this question can be found in the excel template in canvas. You observe the most recent 61 monthly adjusted close prices (this accounts for dividends and stock splits) on the S&P 500 index and company YY. Further, you have annualized yields on 13-week, 5-year and 30-year Treasuries from futures markets. NOTE: This is not actual market data, but rather just data generated for this exam. Assume for the moment that all companies are 100% equity financed and do not hold any large cash positions. Use the CAPM E [ri ] = rf |{z} (1) + i |{z} (2) (E [rm rf ]) | {z } (3) to calculate YY's cost of capital for 3 time periods: 04/01/2023-03/01/2024 (1 years), 04/01/2021-03/01/2024 (3 years), and 04/01/2019-03/01/2024 (5 years). To do so, answer the following questions in turn: 1. (3 points) Suppose YY's cash-flows have an average maturity of 30 years. We use the CAPM to compute its cost of capital. Which risk-free rate rf do you use for term (1) in the CAPM equation? Historical or current (