part B please

b. Suppose you are considering two possible investment opportunities; a 12-year Treasury bond and a 7-year, AA-rated cor following 4 years, and 5% thereafter. The maturity risk premium is estimated by this formula: MRP =0.02(t1)%. The given the company's bond rating, from the following table. Remember to subtract the bond's LP from the corporate spre What yield would you predict for each of these two investments? Round your answers to three decimal places. 12-year Treasury yield: % 7-year corporate yield: % 12-year Treasury bond and a 7-yeat, AA-rated corporate bond. The current real risk-free rate is 5%, and inflation is expected to be 3% for the next 2 years, 4% for the mated by this formula: MRP =0.02(t1)%. The liqudity premium (0) for the corporate bond is estimated to be 0.3%. You may determine the default nisk premilam (OFip), to subtract the bond's 19 from the corporate spread given in the table to arrive at the bond's DRP