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6 decimals with instruction, please Determinants of Interest Rates Using the following DATA: R*= 2.95% I 1 = 5% I 2 = 4% I 3
6 decimals with instruction, please
Determinants of Interest Rates
Using the following DATA:
R*= 2.95%
I1 = 5%
I2 = 4%
I3 = 3%
I4 =2%
MRP = .60% ( t - 1) (NOTE: This is a PERCENTAGE, not a DECIMAL MRP!) t = number of years to maturity
DRP = 8.4%
LP = 3.25%
CALCULATE:
5 year TREASURY BOND RATE ??
8 year CORPORATE BOND RATE ??
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