Excel Online Structured Activity: Interest rate premiums A 5-year Treasury band has a 4.4% yleld. A 10-year Treasury bond yields 6.8%, and a 10-year corporate bond yields 8.45%. The market expects that Inflation will average 3% over the next 10 years (1P10 - 3%). Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk-free rate, re, 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 band has the same default risk premium and liquidity premium as the 10-year corporate bond described. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below, X Open spreadsheet What is the yield on this 5-year corporate bond? Round your answer to two decimal places, File Home Insert Draw Page Layout Formulas Data Review View Arial V 10 v BED GV Av ... 12 fx B D E F 4.40% 6.80% 8.45% 3.00% 0.00% 0.00% 0.00% Formulas #N/A A 1 Interest rate premiums 2 35-year Treasury yield (Ts) 4 10-year Treasury yield (T10) 5 10-year Corporate yield (C10) 6 Inflation Premium over 10 years (IP10) 7 Maturity Risk Premium (MRP) 8 DRP Treasury 9 LP Treasury 10 DRPcs + LPcs = DRPC10 + LPC10 11 12 Real risk-free rate, r* 13 14 Inflation premium over 5 years (IP) 15 16 DRP10 + LP10 17 18 5-year Corporate yield (Cs) 19 20 21 22 23 24 25 26 27 28 29 30 #N/A #N/A #N/A