Question: please answer question 2, 3 and 5 thank you. UlTOW SNO term and renew the loan REAL RISK-FREE RATE eling 5.5%. Your brother-in-law, a broker

please answer question 2, 3 and 5

please answer question 2, 3 and 5 thank you. UlTOW SNO term

thank you.

UlTOW SNO term and renew the loan REAL RISK-FREE RATE eling 5.5%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: or borrow long term? Explain. You read in The Wall Street Journal that 30-day T-bills are currently 6-2 Inflation premium = 3.25% Liquidity premium = 0.6% Maturity risk premium = 1.8% Default risk premium = 2.15% On the basis of these data, what is the real risk-free rate of return? EXPECTED INTEREST RATE 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? What is the yield on 3-year Treasury securities? 6-3 The real risk-free rate is 3%. Inflation is expected to be 2% this 6-5 The real risk-free rate is 3%, and inflation is expected to be 3% MATURITY RISK PREMIUM for the next 2 years. A 2-year Treasury security yields 6.2%. What is the maturity risk premium for the 2-year security

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