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MC Qu. 1 Determinants of Interest Rate for Individual Securities A partic... Determinants of Interest Rate for Individual Securities A particular security's default risk premium

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MC Qu. 1 Determinants of Interest Rate for Individual Securities A partic... Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 470 percent For all securities, the infiation risk premium is 3.70 percent and the real interest rate is 3.10 percent. The security's liquidity risk premium Is 160 percent and maturity risk premium is 2.60 percent The security has no special covenants. What is the security's equilibrium rate of return? o 630% 1570% 31.40% 314%

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