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An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not
An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the inflation cross-product. If the real risk-free rate is 3.19% and inflation is expected to be 18.65% each of the next 8 years, what is the yield on a 8-year security with maturity risk of 1.25%, default risk of 5.18%, and liquidity risk of 1.59? State your answer as a percent to 2 decimal places
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