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If the real rate of interest is 1 percent, the expected inflation premium is 2 percent, and the expected return on a corporate bond is
If the real rate of interest is 1 percent, the expected inflation premium is 2 percent, and the expected return on a corporate bond is 6 percent, what would be the default risk premium on the corporate bond?
1 percent | ||
2 percent | ||
3 percent | ||
4 percent |
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