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A 10-year corporate bond pays 6.75%. The average inflation rate across 10 years is 1.50%, the maturity risk premium is 2.00%, the default risk premium
A 10-year corporate bond pays 6.75%. The average inflation rate across 10 years is 1.50%, the maturity risk premium is 2.00%, the default risk premium is 1.20%, and the liquidity premium is 0.45%.
How much is the real risk-free rate?
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