The attached excel spreadsheet contains the implied equity risk premiums and riskfree rates (T.Bills and T.Bonds). It also includes the Baa default spreads for each year.
a. Using this data, make your best estimate of the implied
equity risk premium today, given the treasury bill and bond rates today.
b. Using the data, make your best estimate of the implied equity risk premium today, given the Baa default spread today.