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The Gergen Group's 5 - year bonds yield 6 . 0 0 % , and 5 - year T - bonds yield 4 . 1
The Gergen Group's year bonds yield and year Tbonds yield The real riskfree rate is r the default risk premium for Gergen's bonds is DRP versus zero for Tbonds, the liquidity premium on Gergen's bonds is LP and the maturity risk premium for all bonds is found with the formula MRP t times where t number of years to maturity. What is the inflation premium IP on year bonds?
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