Hide Feedback Correct Quantitative Problem: An analyst evaluating securities has obtained the following information. The real rate of interest is 2.4% and is expected to remain constant for the next 5 years. Inflation is expected to be 2% next year, 3% the following year, 4% the third year, and 5% every year thereafter. The maturity risk premurn is estimated to be 0.1 x (t-i-, 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 seantes is 196. a. What is the yield on a 1-year T-bll? Round your intermediate calculations and final answer to two dedimal places. 4.30 *% Show All Feedback b. What is the yield on a 5-year T-bond? Round your intermediate calculations and final answer to two deoimal places 6.50 3 Show All Feedback c. What is the yield on a S-year corporate bond? Round your intermediate calculations and final answer to two decimal places 8 0% Show All Feedback Check My Work (No more tries available) Question 2 of7 Save Submit Assignment for Grading Determinants of Market Interest Rate 11:22 PM 2/27/20182 AyRK)