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The pure rate of interest is 4.5 percent and the inflation premium is 3 percent. If you require a risk premium of 2.5 percent for

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The pure rate of interest is 4.5 percent and the inflation premium is 3 percent. If you require a risk premium of 2.5 percent for a security. What is the nominal rate for this security? 7.63%7.11%10.00%10.33% QUESTION 2 What is the real rate? 7.63%7.11%10.00%10.33% QUESTION 3 What is the risk-free rate? (Hint: Set risk premium equal to zero:) 763% 711% 10.00% 10.33%

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