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D Question 24 1 pts High Quality Co.'s 30-year bonds yield 3.26%, and 30-year T-bonds yield 2.30%. The real risk-free rate is r =
D Question 24 1 pts High Quality Co.'s 30-year bonds yield 3.26%, and 30-year T-bonds yield 2.30%. The real risk-free rate is r = -1.75%. The default risk premium on High Quality Co's bonds is 0.75%. The maturity risk premium is found with the formula MRP (t-1) x 0.1% for all bonds, where t = number of years to = maturity. What is the liquidity premium (LP) on High Quality Co's bonds? 0.55% 0.60% 0.21% 0.96% 0.36%
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