Question: Exercise 2 Inflation premium Nominal int. rate = 3 mth U.S. 30yr 30 yr corp Treasury Bill U.S.Treasury AAA bonds rate % (risk int. rate

Exercise 2 Inflation premium Nominal int. rate = 3 mth U.S.

Exercise 2 Inflation premium Nominal int. rate = 3 mth U.S. 30yr 30 yr corp Treasury Bill U.S.Treasury AAA bonds rate % (risk int. rate % int. rate Liquidity risk premium real a. Calculate the real risk free interest rate 21st March 2022 14th April 2022 0.52% 2.52% 3.03% 5.00% 0.01% + 0.74% 2.92% 3.77% 5.00% 0.01% + risk-free inflation Default-risk Maturity-risk Liquidity-risk int. premium premium premium premium + + b. What can you conclude regarding the yield curve direction ? Exercise 2 Inflation premium Nominal int. rate = 3 mth U.S. 30yr 30 yr corp Treasury Bill U.S.Treasury AAA bonds rate % (risk int. rate % int. rate Liquidity risk premium real a. Calculate the real risk free interest rate 21st March 2022 14th April 2022 0.52% 2.52% 3.03% 5.00% 0.01% + 0.74% 2.92% 3.77% 5.00% 0.01% + risk-free inflation Default-risk Maturity-risk Liquidity-risk int. premium premium premium premium + + b. What can you conclude regarding the yield curve direction

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