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The inflation risk premium on a bond is 2 percent, the U.S. T - bill rate is 5 percent, the maturity risk premium on the

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The inflation risk premium on a bond is 2 percent, the U.S. T - bill rate is 5 percent, the maturity risk premium on the bond is 3 percent, the default risk premium on the bond is 2 percent, and the Iiquidity risk premium on the bond is 1 percent. Calculate its nominal rate of return. 16% 11% 9% 13%

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