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Question 6 1 pts You use a two-factor model with TERM and DEF as the...

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Accounting

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Question 6 1 pts You use a two-factor model with TERM and DEF as the factors to price a corporate bond. You calculate the bond's expected return to be 8.9%, its sensitivity to TERM to be 0.8, and its sensitivity to DEF to be 0.3. The risk-free rate is 1.2%, and the DEF premium is 4.3%. What must be the TERM premium? None of the provided answers 9.5% 5.1% 8.0%

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