Calculate a table of interest rates

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Reference no: EM131014871

Calculate a table of interest rates for 5 years based on the following information:

o The pure interest rate is 2%

o Inflation expectations for year 1 = 3%, year 2 = 4%, years 3-5 = 5%

o The default risk is .1% for year one and increases by .2% each year

o Maturity risk premium is 0 for years 1 and 2 and .3% for year 3-5

Reference no: EM131014871

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