•The pure interest rate is 1.6%.
•Inflation expectations for year 1 = 3%, year 2 =3.5%, years 3-5 =5%.
•The default risk is .1% for year one and increases by .2% over 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 .2% for years 3-5