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Assume the current real risk free rate (RFR) is estimated at 2%. Inflation in the coming year is expected to be 2%. Calculate the expected
Assume the current real risk free rate (RFR) is estimated at 2%. Inflation in the coming year is expected to be 2%. Calculate the expected interest rate for a bond under the following conditions, and answer the associated questions. A for-profit hospital would like to issue 30 year callable bonds. Their default risk premium will be 1.5%. These bonds should have a ready market available to them, so the liquidity premium should be (select from: high or low). It is set at 1.5%. The price risk premium would be expected to be (select from: high or low). It is set at 2.5%. The call premium is
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