Question: Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 4.75% yield. A 10-year Treasury bond yields 6%, and a 10 -year

Excel Online Structured Activity: Interest rate premiums A 5-year Treasury bond has a 4.75% yield. A 10-year Treasury bond yields 6%, and a 10 -year corporate bond yields 8.45%. The markest expects that Infiation will average 3,9% over the next 10 years (1P10=3,9$6). Assume that there is no maturity riak premium (MRP = 0) and that the annual real risk. free rate, t, will remain constant over the next 10 years. (Hint: Remember that the default risk premium and the liquldity premium are rero for Treasury securities: DPP =LP=0. A 5 -year corporate bond has the same default risk premium and liquidity premitm 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 belaw. Excel template - Saved File Home Insert Draw Page Layout Formulas Data Real risk-free rate, r Inflation premium over 5 years (IP5) DRP10+LP10 Hormulas 5-year Corporate yield (C5) HN/A

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