i. Write a general expression for the yield on any debt security rd and define these terms: real risk-free rate of interest (r), inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and maturity risk premium (MRP). j. Define the real risk-free rate ( r ). What security can be used as an estimate of r ? What is the nominal risk-free rate rRF? What securities can be used as estimates of rRF? k. Describe a way to estimate the inflation premium (IP) for a t-year bond. I. What is a bond spread and how is it related to the default risk premium? How are bond ratings related to default risk? What factors affect a company's bond rating? m. What is interest rate (or price) risk? Which bond has more interest rate risk: an annual payment 1-year bond or a 10-year bond? Why? n. What is reinvestment rate risk? Which has more reinvestment rate risk: a 1-year bond or a 10-year bond? o. How are interest rate risk and reinvestment rate risk related to the maturity risk premium? p. What is the term structure of interest rates? What is a yield curve? q. Briefly describe bankruptcy law. If a firm were to default on its bonds, would the company be liquidated immediately? Would the bondholders be assured of receiving all of their promised payments