Nominal rate of interest, What would you expect the nominal

Nominal rate of interest

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Reference no: EM13748246

At present 10 year treasury bonds are yielding 3.6% while a 10 year corporate bond is yielding 6.5%. If the liquidity risk premium on the corporate bond id 0.6%, what is the corporate bonds default risk premium?

At present the real risk free rate of interest is 1.2%, while inflation is expected to be 1.5% for the next two years. If a two year treasury note yields 4.5%, what is the maturity risk premium for this two year Treasury note?

What would you expect the nominal rate of interest to be if the real rate is 4.3 percent and the expected inflation rate is 6.9 percent?

Currently treasury bills are yielding 6.8% and the future inflation rate is expected to be 4.7% per year. Ignoring the cross product between the real rate of interest and the inflation rate, what is the real risk free rate of interest?

If you invest $24,000 in a 2 year security which yields 8.1% interest what will the value of your savings be after the second year?

Reference no: EM13748246

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