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The maturity risk premium ( MRP ) is determined from the formula: 0 . 1 ( t - 1 ) % , where t is
The maturity risk premium MRP is determined from the formula: where is the securitys maturity. The liquidity premium LP on all Nationial Transmissions Corp.s bonds is The following table shows the current relationship between bond ratings and default risk premiums DRP:
tableRatingDefault Risk PremiumUS Treasury,AMA
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