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Finance

Given the following information:

Real Risk-Free Rate 2.0%

Inflation Premium 3.0%

Default Risk Prem. 2.5%

Liquidity Risk Prem. 1.0%

Maturity Risk Prem. 1.5%

Estimate the required rates of interest on the bond types below

1. Long-term (30 yr) corporate bond

2. Long-term (30 yr) treasury bond

3. Short-term (30 day) corporate bond

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92668175

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