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A corporations 10 year bonds have an equilibrium rate of return of 7 percent. For all securities, the inflation risk premium is 1.50 percent and

A corporations 10 year bonds have an equilibrium rate of return of 7 percent. For all securities, the inflation risk premium is 1.50 percent and the real interest rate is 3.0 percent. The security's liquidity risk premium is 0.40 percent and the maturity risk premium is 0.70 percent. The security has no special covenants. What is the bonds default risk premium?

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