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PLS DOUBLE CHECK AND GET ANSWER RIGHT PLS AND DOUBLE CHECK THE NUMBERS ON QUESTION TOO PLS. I WILL GIVE THUMBS UP. THANK U 2)
PLS DOUBLE CHECK AND GET ANSWER RIGHT PLS AND DOUBLE CHECK THE NUMBERS ON QUESTION TOO PLS. I WILL GIVE THUMBS UP. THANK U
2) The real risk-free rate on interest, r* is 2.5%, and it is expected to remain constant over time. Inflation is expected to be 3% per year for the next 2 years and 4.2% for the next 4 years. The MRP -0. 1x(t-1)%, where t = the bond's maturity. The default risk premium for a BBB-rated bond is 1.5%. Using the arithmetic average of the expected inflation, what is the yield on a 5-year BBB- rated corporate bond with a liquidity premium of 1.3%? 9.10% 9.52% 9.4% 9.42% 9.60%Step by Step Solution
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