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  3. keys corporation issued 5-year bonds. the real ris

Keys Corporation issued 5-year bonds. The real risk-free rate is r* = 1.23%, the inflation...

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Accounting

Keys Corporation issued 5-year bonds. The real risk-free rate is r* = 1.23%, the inflation premium for 5-year bonds is IP = 2.00%, the liquidity premium for Keys' bonds is LP = 0.5%, the default risk premium (DRP) on Keys' bonds is 1%, and the maturity risk premium is found with the formula MRP = (t - 1) 0.1%, where t = number of years to maturity. What is the nominal interest rate on Keys' bonds? 2.07% 5.13% 3.07% O 1.57% 1.30% Edito p V re U
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Keys Corporation issued 5-year bonds. The real risk-free rate is r=1.23%, the inflation premium for 5 -year bonds is IP=2.00%, the liquidity premium for Keys' bonds is LP=0.5%, the default risk premium (DRP) on Keys' bonds is 1%, and the maturity risk premium is found with the formula MRP =(t1)0.1%, where t= number of years to maturity. What is the nominal interest rate on Keys' bonds? 2.07% 5.13% 3.07% 1.57% 1,30%

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