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r= r* + IP + DRP + LP + MRP 1. Given the following information: Real Risk-Free Rate Inflation Premium Maturity Risk Premium Default Risk

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r= r* + IP + DRP + LP + MRP 1. Given the following information: Real Risk-Free Rate Inflation Premium Maturity Risk Premium Default Risk Premium Liquidity Risk Premium 2.0% 3.0% 1.5% 2.5% 1.0% Estimate the required rates of interest on the bond tvpes below Long-term (30-year) Corporate bond 2,0, 3.0 2.5 01. t .5 101 Long-term (30 year) Treasury bond Short-term (30-day) Corporate bond

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