Question: please answer d and provide the general equation you are using to get the new yield. thank you ^_^ c. Given the following Treasury bond

 please answer d and provide the general equation you are using

please answer d and provide the general equation you are using to get the new yield. thank you ^_^

to get the new yield. thank you ^_^ c. Given the following

Treasury bond yield information, construct a graph of the yield curve. d.

c. Given the following Treasury bond yield information, construct a graph of the yield curve. d. Based on the information about the corporate bond provided in part b, calculate yields and then construct a new yield curve graph that shows both the Treasury and the corporate bonds. b. Suppose you are considering two possible investment opportunities: a 12 -year Treasury bond and a 7-year, A-rated corporate bond. The current real risk-free rate is 4%, and inflation is expected to be 2% for the next 2 years, 3% for the following 4 years, and 4% thereafter. The maturity risk premium is estimated by this formula: MRP =0.02(t1)%. The liquidity premium (LP) for the corporate bond is estimated to be 0.3%. You may determine the default risk premium (DRP), given the company's bond rating, from the following table. Remember to subtract the bond's LP from the corporate spread given in the table to arrive at the bond's DRP. What yield would you predict for each of these two investments? c. Given the following Treasury bond yield information, construct a graph of the yield curve. 3. The government runs a larger-than-expected budget deficit. 4. There is an increase in expected inflation. b. Suppose you are considering two possible investment opportunities: a 12-year Treasury bond and a 7-year, A-rated corporate bond. The current real risk-free rate is 4%, and inflation is expected to be 2% for the next 2 years, 3% for the following 4 years, and 4% thereafter. The maturity risk premium is estimated by this formula: MRP =0.02(t1)%. The liquidity premium (LP) for the corporate bond is estimated to be 0.3%. You may determine the default risk premium (DRP), given the company's bond rating, from the following table. Remember to subtract the bond's LP from the corporate spread given in the table to arrive at the bond's DRP. What yield would you predict for each of these two investments

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