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year T-bills are currently earning 5.00 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate =4.75%
year T-bills are currently earning 5.00 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate =4.75% Default risk premium =3.75% Liquidity risk premium =1.00% Maturity risk premium =3.50% What is the inflation premium? What is the fair interest rate on the corporation's 30 -year bonds? Multiple Choice 25% and 13.25%, respectively 25% and 2.65%, respectively 5.00% and 18.00%, respectively .25% and 13.00%, respectively
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