Real risk-free rate is currently 3.5%. A broker at INV Securities, has given you the...
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Real risk-free rate is currently 3.5%. A broker at INV Securities, has given you the following estimates of current interest rate premiums: Inflation: 2%, Liquidity Risk Premium 1.5%, Maturity Risk Premium 3%, and Default Risk Premium 1.5%. Based on these data, what are the rates of short-term corporate bonds? 5.% 11.5% 8.5% 7.0% 8.0%
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