Question: Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 3.85% yield. A 10-year Treasury bond yields 6.95%, and a 10-year corporate

Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 3.85% yield. A 10-year Treasury bond yields 6.95%, and a 10-year corporate bond yields 8.75%. The market expects that inflation will average 3.75% over the next 10 years (IP30 -3.75%). Assume that there is no maturity risk premium (MRP - 0) and that the annual real risk-free rate, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP - LP -0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Mi t Freel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Upell spredusmeel What is the yield on this 5-year corporate bond? Round your answer to two decimal places. Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 3.85% yield. A 10-year Treasury bond yields 6.95%, and a 10-year corporate bond yields 8.75%. The market expects that inflation will average 3.75% over the next 10 years (IP30 -3.75%). Assume that there is no maturity risk premium (MRP - 0) and that the annual real risk-free rate, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquidity premium are zero for Treasury securities: DRP - LP -0.) A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Mi t Freel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Upell spredusmeel What is the yield on this 5-year corporate bond? Round your answer to two decimal places

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