Question: Problem 6-9 (EXPECTED INTEREST RATE): The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year, and 3.5%

Problem 6-9 (EXPECTED INTEREST RATE): The real risk-free rate is 3%. Inflation is expected to be 3% this year, 4% next year, and 3.5% thereafter. The maturity risk premium is expected to be 0.05* (t-1)%, where t number of years to maturity. What is the yield on a 7-year Treasury note?

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=+for the shareholder of the acquiring company?

=+for the shareholder of the acquired company?

=+for the acquired company?