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Dakota Corporation 15-year bonds have an equilibrium rate of return of 9 percent. For all...

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Accounting

Dakota Corporation 15-year bonds have an equilibrium rate of return of 9 percent. For all securities, the inflation risk premium is 1.70 percent and the real interest rate is 3.40 percent. The securitys liquidity risk premium is 1.15 percent and maturity risk premium is 1.75 percent. The security has no special covenants. Calculate the bonds default risk premium

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