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A company's 5-year bonds are yielding 8% per year. Treasurybonds with the same maturity are yielding 4.8% per year, and thereal risk-free rate (r*) is
A company's 5-year bonds are yielding 8% per year. Treasurybonds with the same maturity are yielding 4.8% per year, and thereal risk-free rate (r*) is 2.25%. The average inflation premium is2.15%, 2 answers
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