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1 1 points Problem 6-1 Determinants of Interest Rates for Individual Securities (LG6-6) A particular security's default risk premium is 3 percent. For all

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1 1 points Problem 6-1 Determinants of Interest Rates for Individual Securities (LG6-6) A particular security's default risk premium is 3 percent. For all securities, the inflation risk premium is 2.80 percent and the real risk- free rate is 1.70 percent. The security's liquidity risk premium is 0.20 percent and maturity risk premium is 0.80 percent. The security has no special covenants. Calculate the security's equilibrium rate of return. (Round your answer to 2 decimal places.) % eBook Rate of return Hint Print References Mc Graw Prev 1 of 15 Next >

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