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find out a table of interest rates for 5 years based on the following information:

- The pure interest rate is 2%

- Inflation expectations for year 1=3%, year 2=4%, years 3-5=5%

- The default risk is .1% for year 1 and increases by .2% each year

- Liquidity premium is 0 for year 1 and increases by .2% each year

- Maturity risk premium is 0 for years 1 and 2 and .3% for years 3-5

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940025

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