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Explain the key factors that determine the yield on a given interest-paying security(i.e. bond). Explain how each of these factors determines why the yield is

  1. Explain the key factors that determine the yield on a given interest-paying security(i.e. bond). Explain how each of these factors determines why the yield is different between one security and another. How can this analysis be used to estimate the risk-free rate of return? (12 points).

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