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Sered TB MC Qu. 6-5 Determinants of Interest Rate for Individual Securities A... Help Save & Exit Determinants of interest Rate for Individual Securities A

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Sered TB MC Qu. 6-5 Determinants of Interest Rate for Individual Securities A... Help Save & Exit Determinants of interest Rate for Individual Securities A Corporation's 10 year bonds have an equilibrium rate of return is 700 percent. For all securities, the inflation risk premium is 154 percent and the real interest rate is 3.04 percent. The security's liquidity risk premium is 19 percent and maturity risk premium is 74 percent. The security has no special covenants. What is the bond's default risk premium? Multiple Choice O un o 5.5TX O 343 O 140

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