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the equilibrium rate of return is 8 percent for this particular security. for all securities, the inflation risk premium is 1.25 percent and the real risk-free rate is 3.5 percent. the security’s liquidity risk premium is 0.35 percent and maturity risk premium is 0.95 percent. the security has no special covenants. calculate the security’s default risk premium if the nominal risk-free rate is 475 basis points

Sagot :

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