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Risk premium Eleanor Bums is attempting to find the nominal rate of interest for a security. She has gathered the following data in a. If

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Risk premium Eleanor Bums is attempting to find the nominal rate of interest for a security. She has gathered the following data in a. If the real rate of interest is currently 1%, find the risk tree rate of interest applicable to the security b. Find the total risk premium attributable to the security's issue and issue characteristics c. Calculate the nominal rate of interest for the security a. If the real rate of interest is currently 1%, the risk free rate of interest applicable to the security is % (Round to one decimal place) b. The total risk prartium attributable to the security's issue and issue characteristics is I (Round to one decimal place) c. The nominal rate of interest for the security is 3% (Round to one decimal place) Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Security 9 years 10.0% Characteristic Time to maturity Inflation expectation premium Risk premium for: Liquidity risk Default risk Maturity risk Other risk 1.4% 0.9% 1.9% 1.5% Print Done

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