=+LG 1 P69 Risk-free rate and risk premiums Consider the following information: Security Time to maturity (years)

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=+LG 1 P6–9 Risk-free rate and risk premiums Consider the following information:

Security Time to maturity (years) Inflationary expectation Risk premium A 3 6% 4%

B 5 5.5 5 C 6 5 2 D 7 4.8 3 E 10 6 6

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