Question: please answer this question The real risk-free rate is 2.25%. Inflation is expected to be 3.25% this year, 5.25% next year, and 2.7% thereafter. The

The real risk-free rate is 2.25%. Inflation is expected to be 3.25% this year, 5.25% next year, and 2.7% thereafter. The maturity risk premium is estimated to be 0.05(t1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places. A company's 5 -year bonds are yielding 10% per year. Treasury bonds with the same maturity are yielding 5.1% per year, and the real risk-free rate (r) is 2.35%. The average inflation premium is 2.35%, and the maturity risk premium is estimated to be 0.1(t1)%, where t = number of years to maturity. If the liquidity premium is 1.2%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places. %
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