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1 2. Calculate the rate AAA in the last problem should expect to pay on a two year loan. Assume a 4% default risk premium
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2. Calculate the rate AAA in the last problem should expect to pay on a two year loan. Assume a 4% default risk premium and liquidity and maturity risk premiums of 3% due to the longer term. Inflation is expected to be 5% in the loan's second year Step by Step Solution
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Public Finance Fundamentals
Authors: K. Moeti
3rd Edition
148512946X, 9781485129462
