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Marshall Manufacturing has just borrowed money at 13.5% for 2 years. The pure rate of interest is 2%. Marshall's default risk premium is 4%, its liquidity risk premium is 2%, and its maturity risk premium is .5%. Inflation is expected to be 3% during the first year of the loan's life. What does the lender expect the inflation rate to be in the loan's second year? Keys Corporation's 5-year bonds yield 7.00 and 5-year T-bonds yield 5.15 The real risk-free rate is r* = 3.0%, the inflation premium for 5-yearbonds is IP = 1.75%, the liquidity premium for Keys' bonds is LP = 0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MP = (t -1) times 0.1%, where t = number of years to maturity. What is the default risk premium (DP) on Keys' bonds? The Habender Company just issued a two-year bond at 12%. Inflation is expected to be 4% next year and 6% the year after. Habender estimates its default risk premium at about 1.5% and its maturity risk premium at about .5 Because it's a relatively small and unknown firm, its liquidity risk premium is about 2% even on relatively short debt like this. What pure interest rate is implied by these assumptions