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Tales 5 pts Question 18 The real risk-free rate of interest ris 4% and it is expected to remain constant over time. Inflationis expected to

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Tales 5 pts Question 18 The real risk-free rate of interest ris 4% and it is expected to remain constant over time. Inflationis expected to be 2% per year for the next three years, after which time inflation is expected to remain at a constant rate of 7% per year. The maturity risk premium is equal to 01t-11% where is the bond's time to maturity. The liquidity and default risk premia on 10-year corporate bonds are 20% and 2.5%, respectively. What is the yield to maturity on a 10-year Treasury bond? 97% 8.4% 10.4% 8.0% 100% Stop haring Proctoris sharing your D Question 19 THOGOTO

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