What is the maturity risk premium on a 5 year bond?

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• Yield on a corporate bond

  The maturity risk premium equals 0.1%(t-1), where t equals the bond's maturity. A 5-year corporate bond yields 8%. What is the yield on a 10-year corporate bond that has the same default risk and liquidity premiums as the 5-year corporate bond?

• Corporate bonds: real risk-free rate

  The maturity risk premium is 0.1% (t-1), where t equals the maturity of the bond. (The maturity risk premium on a 5 year bond is 0.4%.) A 5 year corporate bond has a yield of 8.4%.

• Yield on 5-year corporate bond

  A 5-year corporate bond has the same default risk premium and liquidity premium as the 10-year corporate bond described above. What is the yield on this 5-year corporate bond?

• Yield on the bond

  (2) Inflation is expected to be 3 percent this year, 4 percent next year, and 5 percent a year thereafter. (3) The maturity risk premium is 0.1%(t - 1), where t = the maturity of the bond (in years).

• Yield on a Treasury Bond

  Maturity risk premium on a two year security is 0.1 percent or 0.001. Real risk-free rate of interest is 3%. What is the yield on a treasury bond that matures in 12 years?

• Determination of Interest Rates

  is determined from the formula: 0.l(t - 1)%, where t is the security's maturity; this is a seven year bond} k= 9.38% Calculates the yield on a bond given the risk premium.

• A 5-year corporate bond has an 8 percent yield. A 10-year corporate bond has a 9 percent yield. The two bonds have the same default risk premium and liquidity premium...

  In other words, the maturity risk premium on the five-year bond is 0.4 percent or 0.004. What is the market's expectation today of the average level of inflation for Years 6 - 10, i.e., what is X?

• A five-year corporate bond currently yields 8.5 percent. What will be the yield on the bond, one year from now, if the assessments listed are correct, and the bond's default premium and liquidity premium remain unchanged?

  (2) Inflation is expected to be 3 percent this year, 4 percent next year, and 5 percent a year thereafter. (3) The maturity risk premium is 0.1%(t - 1), where t = the maturity of the bond (in years).

• Expected inflation

  In other words, the maturity risk premium on the five-year bond is 0.4 percent or 0.004. Showing the computation what is the market's expectation today of the average level of inflation for Years 6 - 10, i.e., what is X?