A 5 year treasury bond has a 5.2 percent yeild. A 10 year treasury bond yeilds 6.4 percent, and a 10 year corporate bond yeilds 8.4 percent. The market expects that inflation will average 2.5 percent over the next 10 years (IP10 = 2.5%) Assume that there is no maturity risk premium (MRP = 0) and that the annual real risk free rate, r*, will remain constant over the next 10 years. ( Hint: Remember that the default risk premium and the liquidity premium are zero for treasury securities: DRP = LP = 0) 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 yeild on this 5 year corporate bond?