Excel Online Structured Activity: Interest rate premiums analysis to answer the question below.

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Open spreadsheet

What is the yield on this $5-$year corporate bond? Round your answer to two decimal places.

$15(2)\%$

Interest rate premiums

$5-$year Treasury yield $($T$5)4\mathrm{.}25\%$

$10-$year Treasury yield $($T$10)6\mathrm{.}00\%$

$10-$year Corporate yield $($C$10)8\mathrm{.}90\%$

Inflation Premium over $10$ years $($IP$10)2\mathrm{.}70\%$

Maturity Risk Premium $($MRP$)0\mathrm{.}00\%$

DRP Treasury $0\mathrm{.}00\%$

LP Treasury $0\mathrm{.}00\%$

DRPC$5+$ LPC$5=$ DRPC$10+$ LPC$10$

Formulas

Real risk$-$free rate, r$*$ #N$/$A

Inflation premium over $5$ years $($IP$5)$ #N$/$A

DRP$10+$ LP$10$ #N$/$A

$5-$year Corporate yield $($C$5)$ #N$/$A