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You are considering an investment in 30-year bonds issued by Moore Corporation The bonds have no special covenants. The Wall Street ournal reports that one-year
You are considering an investment in 30-year bonds issued by Moore Corporation The bonds have no special covenants. The Wall Street ournal reports that one-year T-bills are currently earning 3.55 percent Your broker has determined the following information about economic activity and Moore Corporation bonds 50 Real interest rate 275 percent Default risk premium-1.05 percent Liquidity risk premium 0.50 percent Maturity risk premium 185 percent What is the inflation premium
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