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In todays New York Times you read that T-bills are currently yielding 2.5%. You have also obtained the following information: - Default risk premium: 5.5%
In todays New York Times you read that T-bills are currently yielding 2.5%. You have also obtained the following information: - Default risk premium: 5.5% - Liquidity premium: 2.5% - Maturity risk premium: 3.5% - Inflation premium: 2.0% Calculate the real risk free rate of return given the information above
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