Calculate a table of interest rates

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Calculate a table of interest rates for 5 years based on the following information: 1. The pure interest rate is 2% 2. Inflation expectations for year 1 = 3%, year 2 =4%, years 3-5 =5% 3. The default risk is .1% for year one and increases by .1% over each year 4. Liquidity premium is 0 for year 1 and increases by .2% each year 5. Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5

Reference no: EM13970936

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