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Assume the following factors for Newco Inc, debt: Real Risk-Free Rate =1.00% Inflation Premium =3.00% Liquiidty Premium =0.25% Price Risk Premium =0.50% Call Risk Premium
Assume the following factors for Newco Inc, debt: Real Risk-Free Rate =1.00% Inflation Premium =3.00% Liquiidty Premium =0.25% Price Risk Premium =0.50% Call Risk Premium =0.30% What is the interest rate on the bond? 4.25% 5.05% 4.75% 4.45%
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