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Please explain Assume that you are estimating a peso cost of capital for a Mexican company. Mexico's sovereign rating is Baa1. To estimate the peso

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Assume that you are estimating a peso cost of capital for a Mexican company. Mexico's sovereign rating is Baa1. To estimate the peso cost of capital, you can use Mexican long-term government bond yield minus the default spread between Baa1 and Aaa as the risk free rate. True False

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