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The real rate of interest is 2% and is expected to remain constant. Inflation is expected to be 3% next year. The maturity risk premium

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The real rate of interest is 2% and is expected to remain constant. Inflation is expected to be 3% next year. The maturity risk premium is estimated to be 5%. The liquidity premium is 0.25%, and the default risk premium is 0.6%. What is the yield on a 1-year T-bill? 5.25% 3.25% 5% None of these are correct 5.7596 Question 21 1 pts The real rate of interest is 2% and is expected to remain constant. Inflation is expected to be 3% next year. The maturity risk premium is estimated to be .5%. The liquidity premium is 0.25%, and the default risk premium is 0.6%. What is the yield on a corporate bond? None of these are correct 6.35% 6%

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