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A particular securities default risk premium is 3%. For all securities, the inflation risk premium is 2.65% and the real risk free rate is 1.50%.

A particular securities default risk premium is 3%. For all securities, the inflation risk premium is 2.65% and the real risk free rate is 1.50%. The securities liquidity risk premium is 0.35% and maturity risk premium is 0.95%. The security has no special covenants. Calculate the securities equilibrium rate of return.

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