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A company's 7-year bonds are yielding 8,5% per year. Treasury bonds with the same maturity are yielding 6,2% per year, and the real risk-free interest

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A company's 7-year bonds are yielding 8,5% per year. Treasury bonds with the same maturity are yielding 6,2% per year, and the real risk-free interest rate (*)is 2,75%. The average inflation premium is 2,05%. If the liquidity premium is 1,1%, what is the default risk premium on the corporate bonds

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