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Question 15 5 pts A company's 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 5.2% per year, the

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Question 15 5 pts A company's 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 5.2% per year, the real risk-free rate (r*) is 2.3%. The average inflation premium is 2.5%, and the maturity risk premium is estimated to be 0.1 x (t - 1)%, where t = number of years to maturity. If the liquidity premium is 1.1%, what is the default risk premium on the corporate bonds? Edit View Insert Format Tools Table 12ptv Paragraph BIU AT : Find the present value of $400 due in the future under each of these conditions: A. 12% nominal rate, semiannual compounding, discounted back 5 years. B. 12% nominal rate, monthly compounding, discounted back 5 years. Edit View Insert Format Tools Table 12pt Paragraph BI U AT

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