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Suppose that you are considering the purchase of a 30year Treasury bond, a 30year General Motors, Inc. corporate bond, and the common stock of General

Suppose that you are considering the purchase of a 30year Treasury bond, a 30year General Motors, Inc. corporate bond, and the common stock of General Motors. The current risk premiums are provided: Maturity risk premium 4.00% Default risk premium 5.00% Real risk-free rate 2.00% Seniority risk premium 6.00% Inflation premium 7.00% Liquidity premium 2.00%

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Determine the required rate of return for all three securities based on the information provided above.

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