Calculate A Table Of Interest Rates 540025

Calculate a table of interest rates for 5 years based on the following information:

– The pure interest rate is 2%

– Inflation expectations for year 1=3%, year 2=4%, years 3-5=5%

– The default risk is .1% for year 1 and increases by .2% each year

– Liquidity premium is 0 for year 1 and increases by .2% each year

– Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5