Question: PLEASE answer fully and fill in the blanks. Also, point out the answer clearly. 4-7: The Pre-Tax Cost of Debt: Determinants of Market Interest Rates

PLEASE answer fully and fill in the blanks. Also, point out

PLEASE answer fully and fill in the blanks. Also, point out the answer clearly.

4-7: The Pre-Tax Cost of Debt: Determinants of Market Interest Rates Problem 4-4 Determinant of Interest Rates The real risk-free rate of interest is 2%. Inflation is expected to be 1% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Round your answer to two decimal places. What is the yield on 3-year Treasury securities? Round your answer to two decimal places

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