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that an analyst has made the following forecasts risk free rate is expected to remain constant at 2.85% for the next 10 years. inflation is expected to be as follows: Year 1-6%; Year 2 = 10% Year 3-896; Year 4-6%; Yeas-4% and then constant at 396. The maturity risk premium is 0.10%(t-1), where t is the number of years to maturity. Aso assume that you can buy a 5-year corporate bond today that yields an annual rate of return o enths information determine what the yield on this bond should be in one year (this remium and will then be a 4-year bond, if the above forecasts are correct and the bond's default p premium remain unchanged Answer in decimal format, to 4 decimal places. For example, if your answer is 25.22% enter 02522 that an analyst has made the following forecasts risk free rate is expected to remain constant at 2.85% for the next 10 years. inflation is expected to be as follows: Year 1-6%; Year 2 = 10% Year 3-896; Year 4-6%; Yeas-4% and then constant at 396. The maturity risk premium is 0.10%(t-1), where t is the number of years to maturity. Aso assume that you can buy a 5-year corporate bond today that yields an annual rate of return o enths information determine what the yield on this bond should be in one year (this remium and will then be a 4-year bond, if the above forecasts are correct and the bond's default p premium remain unchanged Answer in decimal format, to 4 decimal places. For example, if your answer is 25.22% enter 02522

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