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The real risk-free rate 2.75% and inflation is expected to be 2.25% for the next 5 years. A corporate bond that matures in 5 years
The real risk-free rate 2.75% and inflation is expected to be 2.25% for the next 5 years. A corporate bond that matures in 5 years has a yield of 9.75% and a default risk premium of 1.15%. What is the liquidity premium for this security if the maturity risk premium is 1.45%? 3.25% O 6.90% 1.25% 2.15%
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