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QUESTION 12 Corporation's 5-year bonds yield 7.70% and 5-year T-bonds yield 4.50%. The real risk-free...

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QUESTION 12 Corporation's 5-year bonds yield 7.70% and 5-year T-bonds yield 4.50%. The real risk-free rate is r - 2.5%, the default risk premium bonds is DRP 1.90% versus zero for T-bonds, the liquidity premium on Ker's bonds is LP-1,3%, and the maturity risk premium Lonis is found with the formula MRP -(t-1)-0.1%, wheret - number of years to maturity. What is the inflation premium (IP) on all 5. Loh 1.86% 1.78% 1.829 d. 1.4996 . 1.60% QUESTION 12 Corporation's 5-year bonds yield 7.70% and 5-year T-bonds yield 4.50%. The real risk-free rate is r - 2.5%, the default risk premium bonds is DRP 1.90% versus zero for T-bonds, the liquidity premium on Ker's bonds is LP-1,3%, and the maturity risk premium Lonis is found with the formula MRP -(t-1)-0.1%, wheret - number of years to maturity. What is the inflation premium (IP) on all 5. Loh 1.86% 1.78% 1.829 d. 1.4996 . 1.60%

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