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6. Nikki Gs Corporations 10-year bonds are currently yielding a return of 6.05%. The expected inflation premium is 1.00% annually and the real risk-free rate
6. Nikki Gs Corporations 10-year bonds are currently yielding a return of 6.05%. The expected inflation premium is 1.00% annually and the real risk-free rate is expected to be 2.10% annually over the next 10 years. The liquidity risk premium on Nikki Gs bonds of 0.25%. The maturity risk premium is 0.10% on 2-year securities and increases by 0.50% for each additional year to maturity. Calculate the default risk premium on Nikki Gs 10-year bonds.
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