I need explanantion on the answers, formulas and math used A treasury bond due i

Question

I need explanantion on the answers, formulas and math used

A treasury bond due in one year has a yield of 6.3% while a treasury bond due in 5 years has a yield of 8.8%. A bond due in 5 years issued by High Country Marketing Corporation has a yield of 9.6% while a bond due in one year issued by High Country Marketing Corporation has a yield of 6.8%. The default risk premiums on the one-year and 5-year bonds issued by High Country Marketing Corp. are respectively __________ and _________. Answer 0.4%, 0.3% 0.4%, 0.5% 0.5%, 0.5% 0.5%, 0.8%.

Explanation / Answer

Details `1 Year Bond Yield 5 Yr bond Yield Treasury Bond Yield(risk free) 6.3% 8.8% High country Marketing Corp Bond 6.8% 9.6% Default Risk Premium= 0.5% 0.8% High Country Marketing Corp Bond `1 Year Bond Yield 5 Yr bond Yield So defaut Risk Premium are   0.50% 0.80%

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