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A particular security ' s default risk premium is 4 percent. For all securities , the inflation risk premium is 3 . 6 5 percent
A particular securitys default risk premium is percent. For all securities the inflation risk premium is percent and the real riskfree rate is percent. The securitys liquidity risk premium is percent and maturity risk premium is percent. The security has no special covenants. Calculate the securitys equilibrium rate of return. Round your answer to decimal places.
Answer is complete but not entirely correct.
tabletableRate ofreturn
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