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need help TB MC Qu. 6-2 Determinants of Interest Rate for Individual Securities A partic... Determinants of Interest Rate for Individual Securities A particular security's
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TB MC Qu. 6-2 Determinants of Interest Rate for Individual Securities A partic... Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 3.30 percent. For all securities, the inflation risk premium is 2.05 percent and the real interest rate is 2.90 percent. The security's liquidity risk premium is 60 percent and maturity risk premium is 55 percent. The security has no special covenants. What is the security's equilibrium rate of return? Multiple Chaice 610% 940k 880% 1.88 Step by Step Solution
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