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Pace Inc just received a loan for one year at 9%. The pure rate is 3%, and the company's financial condition warrants a default risk

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Pace Inc just received a loan for one year at 9%. The pure rate is 3%, and the company's financial condition warrants a default risk premium of 2.6% and a liquidity risk premium of 1.3%. There is little or no maturity risk in one-year loans. What inflation rate do lenders expect next year? Round your answer to one decimal place and add \% sign to your

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