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The nominal risk-free rate is currently 3 percent. You are considering investing in a 20-year corporate bond. The interest-rate risk premium is 2 percent, the
The nominal risk-free rate is currently 3 percent. You are considering investing in a 20-year corporate bond. The interest-rate risk premium is 2 percent, the default risk premium is 3.3 percent, and the liquidity risk premium is 2.3 percent. What should your yield on this bond be? (Round answer to 1 decimal place, e.g. 52.7.) %
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