Interest Rates and Bond Valuation

According to the textbook’s discussion, the Fisher Equation can be expressed as Nominal Interest Rate ≈ Real Rate + Expected Inflation. The textbook further explains that the nominal interest rate on any financial instrument is a function of not only the real rate and expected future inflation, but also interest rate risk, default risk, taxability, and the lack of liquidity. find the following rates recorded for the latest month?

Federal Funds _______

4-Week Treasury bills ________

6-Month Treasury bills             ________

10-Year Treasury bonds           ________

20-Year Treasury bonds           ________

30-Year Treasury bonds           ________

Moody’s seasoned

Corporate Bonds

                                Aaa            ________  

                                Baa            ________

Provide in the space below an explanation for the determination of the latest monthly rate on Moody’s seasoned corporate bonds rated Baa based on the above rates and the factors that determine nominal interest rates.