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The current T-Bill rate is 1.5%. The estimate for inflation is 2%. The Default Risk premium is 2% for class AA bonds and 4% for
The current T-Bill rate is 1.5%. The estimate for inflation is 2%. The Default Risk premium is 2% for class AA bonds and 4% for class BB bonds. The Liquidity premium for Well Fargo bonds is 1%. What is the required yield for Wells Fargo bonds which are rated AA? Select one: o a. not enough data O O b. 5.5% x c. 6.5% O d. 4%
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