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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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