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corporate finance 3b. . You read in the Wall Street Journal that 30-day treasury bills are currently yielding 8%. You are informed by a broker
corporate finance
3b. . You read in the Wall Street Journal that 30-day treasury bills are currently yielding 8%. You are informed by a broker the following estimates of current interest rate premium: Inflation premium = 5% Liquidity premium = 1% Maturity risk premium = 2% Default risk premium = 2% Disregard cross product terms, i.e., if averaging is required, use the arithmetic average. On the basis of these data, what is the real risk-free rate of return. . In All Step by Step Solution
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