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The pure rate of interest is 2 . 5 percent and the inflation premium is 5 percent. If you require a risk premium of 3

The pure rate of interest is 2.5 percent and the inflation premium is 5 percent. If you require a risk premium of 3.5 percent, what is the real rate? Use exact formulation. 8.75%6.09%11.00%6.00%11.39%
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