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Chandler Co.'s 5-year bonds yield 7.25%, and 5-year T-bondsyield 5.15%. The real risk-free rate is r* = 3.0%, the inflationpremium for 5-year bonds is IP
Chandler Co.'s 5-year bonds yield 7.25%, and 5-year T-bondsyield 5.15%. The real risk-free rate is r* = 3.0%, the inflationpremium for 5-year bonds is IP = 1.75%, the liquidity premium forChandler' 2 answers
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