A particular securitys default risk premium is 3 percent, Ask an Expert

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A particular security's default risk premium is 3 percent. For all securities the inflation risk premium is 4 percent and the real intertest rate is 2.25 percent. The securitys liquidity risk premium is 0.75 percent and maturity risk premium is 0.90 percent. The secuity has no 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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