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NikkiG's Corporation's 10-year bonds are currently yielding a return of 6.05 percent. The expected inflation...

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Finance

NikkiG's Corporation's 10-year bonds are currently yielding a return of 6.05 percent. The expected inflation premium is 1.00 percent annually and the real risk-free rate is expected to be 2.10 percent annually over the next 10 years. The liquidity risk premium on NikkiG's bonds is 0.25 percent. The maturity risk premium is 0.10 percent on two-year securities and increases by 0.05 percent for each additional year to maturity. Calculate the default risk premium on NikkiG's 10-year bonds.

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