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16 nder an Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-free rate is r*=2.5%, the inflation premium for 5-year
16 nder an Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-free rate is r*=2.5%, the inflation premium for 5-year bonds is IP = 1.50%, the liquidity premium for Keys' bonds is LP=0.5% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP =(t-1) 0.1%, where t= number of years to maturity. What is the default risk premium (DRP) on Keys' bonds? omo 1,00 Seleccione una: o a. 0.17% b. 0.20% O c.0.24% d. 0.19% o e. 0.22%
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