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You are an excellent financial advisor and decide to do some research about Reinhardt Corporation, as you have a client that may want to invest

You are an excellent financial advisor and decide to do some research about Reinhardt Corporation, as you have a client that may want to invest in bonds issued by the corporation. The inflation premium is expected to be 1.40% next year, 1.51% in year 2, 1.68% in year 3, and 2.10% in year 4. It is expected to remain constant after year 4. The real risk-free rate is 1.95%. You have determined the following additional information about Reinhardt Corporations bonds: the default risk premium is 3.08%, the liquidity risk premium is 1.64%, and the maturity risk premium is 0.0015 * n, where n is the number of years until maturity. If the bonds mature in 15 years, should your client invest in these bonds? Explain.

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