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JKL Enterprises' 30-year bonds have a quoted rate of 8.55%. The expected inflation premium for each of the next 30 years is 2.68%. The real,
JKL Enterprises' 30-year bonds have a quoted rate of 8.55%. The expected inflation premium for each of the next 30 years is 2.68%. The real, risk-free rate is expected to compensate investors 1.82% per year for the next 30 years. The bonds are very liquid and require no liquidity premium. The maturity risk premium on 20-year bonds is 0.5%, and increases by 0.03% for each additional year to maturity. The bond has a call feature which requires an additional 0.5% to compensate the owner of the risk. What is the implied (calculated) default risk premium from this bond
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