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XYZ corporation's 5-year bonds yield 6.50%, and 5 year t-bonds yield 4.40%. The real risk free rate is r* = 3.0%, the default risk premium

XYZ corporation's 5-year bonds yield 6.50%, and 5 year t-bonds yield 4.40%. The real risk free rate is r* = 3.0%, the default risk premium for XYZ's bonds is DRP = 5% versus zero for T-bonds, and the liquidity premium on XYZ's bonds is LP = 1.6%. What is the inflation premium?

what would be the inflation premium if r* was decreased to 2.0%?

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