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QUESTION 14 Assume that the real risk-free rate is r* = 7% and the average expected inflation rate is 14% for each future year. The
QUESTION 14 Assume that the real risk-free rate is r* = 7% and the average expected inflation rate is 14% for each future year. The Default Risk Premium and Liquidity Premium for Bond X are each 2%, and the applicable Maturity Risk Premium is 3%. What is Bond X's interest rate?Round your answer two decimal places and do not put a "%" sign on the end. If the answer is 1%, you should enter 1.00 in the box.
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