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You are given the following data: r* = real risk-free rate: 3% Inflation premium (IP): 6% Maturity risk premium (MRP): 2% Default risk premium
You are given the following data: r* = real risk-free rate: 3% Inflation premium (IP): 6% Maturity risk premium (MRP): 2% Default risk premium (DRP): 3% Liquidity risk premium (LP): 2% Given these conditions, the rate on long-term Treasury bonds is 11% 15% 13% 12%
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