The real risk free rate of return is 1.8%. Inflation is expected to average 1.4%...
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Finance
The real risk free rate of return is 1.8%. Inflation is expected to average 1.4% for the next 5 years. After that time, it is expected to average 3.8% per year. If there is no maturity risk premium and a 10-year corporate bond has liquidity premium of 7% and a yield of 8.2%, what is its default risk premium? 1.9% 4.3% O 7% O 3.1% None of the Above
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