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You have the following information gathered about a bond: Yield-to-Maturity = 7.4% Real Rate of Interest = 2.2% Default Risk Premium = 2.4% Liquidity Risk
You have the following information gathered about a bond:
- Yield-to-Maturity = 7.4%
- Real Rate of Interest = 2.2%
- Default Risk Premium = 2.4%
- Liquidity Risk Premium = 0.2%
- Maturity Risk Premium = 0.5%
- Special Characteristics Premium = 1.1%
Given this, the average annualized expected rate of inflation over the life of this bond is ___%
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
