finacial mangement

Quantitative Problem: An analyst evaluating securities has obtained the following information. The real rate of interest is 2.9% and is expected to remain constant for the next 5 years. Inflation is expected to be 2.8% next year, 3.8% the following year, 4.8% the third year, and 5.8 % every year thereafter. The maturity risk premium estimated to be 0.1 x (t-1) %, where t = number of years to maturity. The liquidity premium on relevant 5-year securities is 0.5% and the default risk premium on relevant 5-year securities is 1%. a. What is the yield on a 1-year T-bill? Round your answer to one decimal place. 2.98 Hide Feedback Incorrect Check My Work Feedback b. What is the yield on a 5-year T-bond? Round your answer to one decimal place. 7.30 Show All Feedback c. What is the yield on a 5-year corporate bond? Round your answer to one decimal place. 8.80 Show All Feedback O Icon Key Check My Work