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Question 6 3 pts On 3/26/2018, the risk-free rate is 1%, the TERM premium is 4% and the DEFAULT premium is 2%. You use a

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Question 6 3 pts On 3/26/2018, the risk-free rate is 1%, the TERM premium is 4% and the DEFAULT premium is 2%. You use a two-factor model to price a corporate bond with a sensitivity of 0.1 to the TERM factor and 0.2 to the DEFAULT factor. According to the model, what should be the bond's expected return? 0.8% 1.8% None is correct 0.4%

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