Question: Please I need your help with these 2 problems please! Thanks in advance :) 4. Problem 6.04 (Default Risk Premium) A Treasury bond that matures

Please I need your help with these 2 problems please! Thanks in advance :) Please I need your help with these 2 problems please! Thanks inadvance :) 4. Problem 6.04 (Default Risk Premium) A Treasury bond that

4. Problem 6.04 (Default Risk Premium) A Treasury bond that matures in 10 years has a yield of 4.25%. A 10-year corporate bond has a yield of 10.00%. Assume that the liquidity premium on the corporate bond is 0.40%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. % The real risk-free rate is 3.50%, and inflation is expected to be 2.50% for the next 2 years. A 2-year Treasury security yields 8.50%. What is the maturity risk premium for the 2- year security? Round your answer to two decimal places. %

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