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#9 HELP please! 9. UU.UU. What is the default risk premium of the corporate bond? ACME, Inc. has an outstanding 5-year bond that yields 8.0%

#9 HELP please! image text in transcribed
9. UU.UU. What is the default risk premium of the corporate bond? ACME, Inc. has an outstanding 5-year bond that yields 8.0% to bondholders. The average real rate of return is 1.5% and the firm faces a liquidity risk premium of 0.2% and 2% default risk premium. ACME, Inc bond has a 1% maturity risk premium. Additionally, ACME, Inc. estimates inflation rates to be 1% for the next four years. What is the expected inflation rate in the fifth year? Tort Inc has issued a tu tar hand will 10

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