Save your spreadsheet and use four decimal places in your answers, such as 0.1234 or 12.34% ** 1. The ABC issues 4-year bonds. The yield of 4-year T-bonds =4.75%. The real risk-free rate is r= 2.70%, the yield for ABC 's bonds is 6.50% nds, the liquidity premium on ABCs bonds is LP=1.25%, and the maturity risk premium for all bonds is found with the formula MRP =(t1)0.1%, where t - number of years to maturity. The inflation premium (IP) on 4-year bonds =1.05%. What would be the default risk premium of ABC Group 4 -year bonds? 2. Two years ago, ABC Co. issued 15 -year, noncallable, 7% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they? 3. A 25 -year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $950. If the yield to maturity remains at its current rate, what will the price be 4 years from now? 4. ABC Inc.'s bonds currently have a 6-year maturity, a coupon rate of 9%, paid semiannually, and a par value of $1,000. The yield to maturity of the bond is 10%. What is their current yield