1. Maturity Risk Premium The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%. What is the maturity risk premium for the 2-year security?
2. In your own words why do mutual funds are not doing well comparing to benchmark ?
3. Sales = 10,000; tax rate is 35%; cost = 6000 (not including depreciation); Depreciation = 1000; Net Income = 1771.25. What is interest expense?