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Lennar Corporations one year bond has a yield equal to 6.5%. Suppose that the maturity risk premium (MRP) for all bonds with maturities greater than
Lennar Corporations one year bond has a yield equal to 6.5%. Suppose that the maturity risk premium (MRP) for all bonds with maturities greater than one year is 0.15% per year. Based on this information, what should be the yield on Lennars five-year bonds?
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