If 10-year T-bonds have a yield of 4.6%, 10-year corporate bonds yield 6.9%, the maturity risk...

If 10-year T-bonds have a yield of 4.6%, 10-year corporate bonds yield 6.9%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.15% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? (Express your answer as a percent and round your answer to two decimal places.)

5-year Treasury bonds yield 6.7%. The inflation premium (IP) is 2.13%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.52%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*? (Express your answer as a percent and round your answer to two decimal places)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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