A particular securityrsquos default risk premium is 4, Ask an Expert

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A particular security’s default risk premium is 4 percent. For all securities, the inflation risk premium is 2.50 percent, and the real risk-free rate is 3 percent. The security’s liquidity risk premium is .75 percent and the maturity risk premium is 1.20 percent. If the security does not have any special covenants, what is the security’s equilibrium rate of return.

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Financial Management, Finance

Category:- Financial Management
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