What is the rate on ten year corporate bond

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Reference no: EM132040440

You read in the Wall Street Journal today that the real risk free rate is 2.74%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation Premium = 3.25%; Liquidity Premium = 0.6%; 10-year Maturity Risk Premium 1.8%; and Default Risk Premium = 2.15%. What is the rate on a 10-year US Treasury bond and what is the rate on a 10-year corporate bond? Please do NOT use excel to answer this question.

Reference no: EM132040440

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