Calculate the default risk premiums and inflation risk


Calculate the default risk premiums, and inflation risk premiums for these three bonds. Show your formula and calculations.

A) GT10:GOV 10-year U.S. Treasury Bond, Price = $99.05, yield = 2.36%

B) GTII10:GOV 10-year TIPS Bond, Price = $98.95, yield = 0.48%

C) MSFT4389877 Microsoft 10-year bond, Price = $96.87, yield = 2.802%

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Financial Management: Calculate the default risk premiums and inflation risk
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