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Save Answer Question 35 4 points Assume that r = 1,0%; the maturity risk premium is found as MRP = 0.3%(t = 1) where t

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Save Answer Question 35 4 points Assume that r = 1,0%; the maturity risk premium is found as MRP = 0.3%(t = 1) where t = years to maturity; the default risk premium for AT&T bonds is found as DRP=0.07%(t-1); the liquidity premium is 0.50% for AT&T bonds but zero for Treasury bonds; and inflation is expected to be 5% and 6% during the next two years and then 4% thereafter. The interest rate on 10-year Treasury bonds is %

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