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Given the interest rate component information below, determine the yield on a 5 year, A-rated bond. Show in percent to one decimal point without the
Given the interest rate component information below, determine the yield on a 5 year, A-rated bond.
Show in percent to one decimal point without the percent sign. e.g. 3.1% would be 3.1
| Real Rate | 1.4% |
| Inflation | 4.5% |
| 5 year Maturity Risk Premium | 2.0% |
| 10 year Maturity Risk Premium | 4.0% |
| AA Default Risk Premium | 0.6% |
| A Default Risk Premium | 1.3% |
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
