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The real risk - free rate, r * , is 1 . 8 % . Inflation is expected to average 1 . 6 % a
The real riskfree rate, r is Inflation is expected to average a year for the next years, after which time inflation is expected to average a year. Assume that there is no maturity risk premium. An year corporate bond has a yield of which includes a liquidity premium of What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places.
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