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An analyst collected the following information: Inflation premium 2% Default risk premium 2% Liquidity premium 1% Maturity premium 2% Assuming the required rate of return
An analyst collected the following information:
Inflation premium | 2% |
Default risk premium | 2% |
Liquidity premium | 1% |
Maturity premium | 2% |
Assuming the required rate of return is 10%, the nominal riskfree interest rate is closest to:
Group of answer choices
A. 5%.
B. 4%.
C. 3%.
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