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Consider HealthNorth Corporation. Its bonds are callable 30-year bonds with an inflation premium of 3%, default risk, liquidity and price risk premiums of 1 percent

Consider HealthNorth Corporation. Its bonds are callable 30-year bonds with an inflation premium of 3%, default risk, liquidity and price risk premiums of 1 percent each, and a call risk premium of 30 basis points. Under these assumptions, what is the presumed interest rate of these bonds?

Interest rate30 year bonds = RRF+IP+DRP+LP+PRP+CRP

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