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  3. 13. what is a five-year treasury note's yield if t

13. What is a five-year Treasury note's yield if the real rate of interest is...

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13. What is a five-year Treasury note's yield if the real rate of interest is constant at 3.00%, the market risk premium is 01 (1-1)%, the average inflation premium is 2.00% for the first 3 years and 3.00% for the next two years and the default risk premium for "A" and below rated bonds is 2.5%? (2 points) a. 4.50% b. 5.00% C. 5.20% d. 5.40% e. 5.60% Treasury note is 5.60% what does that Using the information in the previous problem, if the vield on imply about the inflation rate in year six? (4 points) a. 3.00% b. 3.10% c. 3.20% d. 3.40% e. 3.60%

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