Calculate a table of interest rates based on the following information: The pure interest rate...
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Accounting
Calculate a table of interest rates based on the following information:
The pure interest rate is 2.5%
Inflation expectations for year 1 = 2%, year 2 =4%, years 3-5 =5%
The default risk is .1% for year one and increases by .1% over each year
Liquidity premium is 0 for year 1 and increases by .15% each year
please break this down step by step
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